Better Credit Decisions with Limit Ledger
The iconic String shelf turns 75 years old. The shelf, which has existed in various forms, has been part of the company String Furniture since 2005. With sales in over 40 countries to a wide range of retailers, the company needs to insure its transactions to avoid taking on excessive risk.
“With Limit Ledger as a complement to our credit insurance, we can see how well protected we actually are and make well-considered decisions about credit approvals. Based on the report we generate, I can have better discussions with the finance department, the management team, and the group leadership,” says Mats Nilsson, CFO at String Furniture.
The current owners, who also brought the shelf back to life, have expanded the portfolio with other products and brands. A total of around 35 people work at the headquarters in Limhamn, and the company also collaborates with salespeople and agents across its various markets. String Furniture has no in-house production but emphasizes that nearly everything they sell is produced in Sweden.
When Mats Nilsson became CFO of String Furniture in 2016, the company had already begun selling internationally. He quickly recognized the challenges that came with greater credit risks due to increased sales volume in more and more countries. To gain better control over outstanding receivables, the company began using credit insurance.
Credit insurance is a complex product to work with, requiring significant time for reporting and administration to comply with the agreement with the insurer.
“But the insurance allows us to be more aggressive — we can deliver and still feel secure. Right now, the market is tough; more customers are going bankrupt and falling behind on payments,” says Mats Nilsson.
String Furniture has used Limit Ledger since the system was launched, and Mats believes that credit insurance requires exactly such a tool for control and analysis.
“With Limit Ledger, we get an overview, and the reports provide clarity for everyone. Our accounting manager prepares a weekly risk analysis report on our receivables. I use this report in meetings with the finance department, the management team, and the group leadership as an important indicator of how the operational business is performing,” Mats explains.
All information collected and accurate
Amanda Nilsson, the company’s accountant, explains that she produces the report in Limit Ledger every Wednesday. With the classic pie chart, it is easy to see what is insured and where risks exist. She analyzes whether the credit limits are appropriate and ensures compliance with the insurer’s agreement. The system’s warnings give her confidence — she knows when action is required, for example if an invoice has not been paid within the timeframe specified in the insurance terms.
“Previously, I used my own Excel sheet and didn’t have all the information gathered in one place. Now I have credit limits, rating limits, and credit reports in the same system rather than in different tabs, and I no longer worry that information might be missing or incorrectly linked.”
“Now I am confident that the information I provide is accurate. Plus, the reporting is clean and professional rather than a long detailed Excel list. With the clear pie chart combined with percentages and amounts showing what is actually insured out of the total receivables at the time of reporting, it becomes easier for Mats to present the information further,” says Amanda.
In challenging times like now — especially in the furniture and interior design industry — working with credit insurance becomes an even more important tool in daily operations. An uncertain market often leads to reduced credit limits, and companies must act.
“A major advantage for me as CFO is that we avoid ending up in situations where we are uninsured and do not get paid. With the help of Limit Ledger, we stay one step ahead,” concludes Mats Nilsson.