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Do’s and don’ts Credit Management Africa during the Order to Cash cycle

Do’s and don’ts Credit Management Africa during the Order to Cash cycle. Do’s and don’ts Credit Management during the Order to Cash cycle. My name is Eric Berendsen In credit management for 25 years Working in the African market since 5 years Summary Short introduction to Boart Longyear

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Do’s and don’ts Credit Management Africa during the Order to Cash cycle

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  1. Do’s and don’ts Credit Management Africa during the Order to Cash cycle

  2. Do’s and don’ts Credit Management during the Order to Cash cycle • My name is Eric Berendsen • In credit management for 25 years • Working in the African market since 5 years Summary • Short introduction to Boart Longyear • The do’s and don’ts for credit management during the O2C cycle • Q&A

  3. Boart Longyear Ltd Boart Longyear is a global mineral exploration company founded in 1888. It is headquartered in Salt Lake City, Utah, United States. Listed on the Australian stock exchange (ASX:BLY) Regional offices and operations are located in the Asia-Pacific region, North and South America, and EMEA. The company provides mineral exploration services and drilling products for the global mining industry and also has a presence in drilling water exploration, environmental sampling, energy, and oil sands exploration. As of September 2013, it employesmore than 6,000 people.

  4. What is so special about Africa form a business perspective? • Large natural resources • Political instability • Bad infrastructure • Poor financial infrastructure • Growth opportunity

  5. The order to cash cycle

  6. Customer • Who is your customer • Where to get additional (financial) information • Payment terms • T & C’s

  7. Order entry • Order fulfillment • Get correct PO • Which T&C’s are applicable • Order release process

  8. Distribution • INCO terms • Customs • Inspection requirements

  9. Check what is required by law • Currency • Language • Required CFD’s • Getting in on time to the customer • Invoicing

  10. Who is approving • Who is paying • Which bank to use • What currency • LC’s • Collection

  11. INCOTERMS

  12. Deduction • Cash application • Getting bank statement • Currency • Taxes • Deducted cost • One last thing…….

  13. Example payment application • Customer in Ghana is send an invoice of 118K (including 18% VAT) • Customer is exempted (doesn’t have to pay tax) • Customer deducts fuel invoice of 20K • Customer may deduct 2% for early payment • Payments we’ve received were

  14. Takeaways and Q & A • Go through your own O2C cycle to determine possible pitfalls • Make sure you’re actively involved in the O2C cycle as early as possible • Contact specialized organizations

  15. Thank you! Eric Berendsen Manager Credit & Collections EMEA Boart Longyear 12 Avenue des Morgines CH1213 Petit-Lancy, Geneva Switzerland Tel.: +41 22 709 08 84 Mobile: +41 79 176 48 98 eberendsen@boartlongyear.com

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