Smart tool provides security in Tara Pac’s business
The number of bankruptcies in 2023 increased by a total of 29 percent compared with 2022. Insuring your business transactions correctly is therefore becoming increasingly important. For just over a year, the packaging company Tara Pac has been using the Limit Ledger system to keep track of its credit insurance.
“By using Limit Ledger, I feel confident that I’m getting value for my money. We don’t insure transactions unnecessarily — instead, we spend the money on the right things,” says Peter Olsson, owner and founder of Tara Pac.
Tara Pac is a distributor of packaging without its own manufacturing. The head office is located in Lund, and they have their own warehouse in Landskrona. In addition to being the Nordic agent for the German company Jokey, Tara Pac has a number of other suppliers in Europe and sells to many different industries, which reduces the risk of economic fluctuations. This year, the company celebrates its 30th anniversary and has a total of eleven employees, with a turnover of approximately 150 million SEK.
Marcus Karlsson works as Head of Finance at Tara Pac but is also responsible for warehousing and logistics.
“Our customers are medium-sized and smaller companies located only in the Nordic region. Since we operate as an intermediary, we do not have very large margins and therefore rely on customers paying on time. Using credit insurance is crucial, and to be able to keep track of and oversee them, Limit Ledger is truly the perfect tool for us,” says Marcus Karlsson.
Thanks to Limit Ledger simplifying the work around credit insurance, he has become more efficient and can focus on other controller tasks, which in turn means the company indirectly saves both time and money — something that owner and founder Peter Olsson naturally values highly.
“I feel more at ease knowing that we don’t insure unnecessarily and that we are constantly updated on the latest status.”
Proactive work with a simple routine
It has become a routine for Marcus to spend about an hour each week updating information related to the credit insurance in Limit Ledger. He imports the current accounts receivable data from the ERP system and a list of current credit decisions from the insurance company once a week. If the information has not been updated for a while, he receives reminders about it.
“Previously, I spent significantly more time checking things and only acted when something happened. Now I work more proactively. It’s an excellent tool for connecting the dots between our credit checks and our credit insurance.”
Through Limit Ledger, it is easy to see whether the credit limit is appropriate using the system’s intuitive pie charts.
“We have some seasonal customers, and then you can adjust the limit during the year. The different colors in the chart show the status, and I can also add comments and bookmarks — it makes the work easier,” says Marcus Karlsson.
“When a salesperson asks what limit we should set for a customer, it used to be complicated for me to look it up. I had to check many places, whereas now it only takes a few clicks, and I can give a reliable answer. That way, I become a better support to the sales team.”
The security and reliability that Limit Ledger creates is something Peter Olsson appreciates.
“Knowing that Marcus feels confident and secure in his work, and doesn't have to worry about having missed something, feels good — and it helps me sleep well at night.”