For most businesses, trade credit is not just a payment option, it’s the foundation of growth. Extending credit allows customers to buy more, build loyalty, and expand markets. But in 2025, managing trade credit has never been more challenging. 

Longer collection times, higher fraud risks, and tougher regulatory scrutiny are making it harder for credit teams to keep debtor books healthy. At the same time, customers expect faster approvals and seamless onboarding. There is a widening gap between traditional, manual credit practices and the demands of today’s business environment. 

At Trade Shield, we believe this gap is where technology can make the difference. But adoption is not automatic. Let’s unpack the challenges facing credit teams and why overcoming them is worth it. 

The Pressure on Trade Credit Teams 

Recent research paints a sobering picture: 

• Collections are taking longer.

In South Africa, business insolvencies rose by 9% in 2024 (Stats SA), highlighting growing strain on payment cycles. 

• Fraud is a rising threat.

The Alloy State of Fraud Report 2025 found that 60% of financial institutions and FinTechs reported higher fraud rates in the past year, a risk credit teams cannot ignore. 

• Demand for credit is climbing.

TransUnion’s Q1 2025 report shows a 30% increase in new credit originations year-on-year, much of it from below-prime borrowers, signalling higher demand, but also higher risk. 

• SMEs are resource constrained.

A 2025 survey of 10,000 South African SMEs found that limited financial skills and weak business networks are major internal barriers to effective credit management (South African Journal of Economic and Management Sciences, 2025). 

Together, these factors mean that credit managers are expected to do more, with less, and faster than ever before. 

Challenges to Trade Credit Modernisation 

Many finance teams remain cautious about adopting new trade credit approaches, despite mounting pressures to modernise. Common challenges include slow, manual onboarding processes, reactive debtor management, and limited staffing that leaves credit functions stretched thin. Concerns about system integration, upfront costs, and technical skills gaps also contribute to resistance. While these challenges are real, they are not insurmountable, and overcoming them is key to unlocking more efficient, proactive, and scalable credit operations. 

Why Trade Credit Modernisation Is Worth It 

Businesses that cling to manual systems face mounting risks, including higher bad debt due to missed early warning signs, slower sales cycles caused by delayed approvals, and cash flow strain from late collections and defaults. In today’s economic climate, these issues can quickly escalate, threatening liquidity and competitiveness. Moreover, outdated systems often fall short of process improvement and efficiency.  

On the other hand, companies that embrace trade credit technology unlock significant advantages.  

• Digital onboarding and integrated bureau checks enable credit approvals in minutes rather than days.  

• Predictive analytics and real-time monitoring help identify at-risk accounts before they default.  

This proactive approach not only protects revenue but also enhances customer experience. It enables faster decisions and smoother onboarding, trust, loyalty and drives repeat business. Operational efficiency also improves, as automation frees up credit teams from repetitive admin, allowing them to focus on strategic initiatives. 

At Trade Shield, we define best-in-class credit management by five core principles.  

1. Digital onboarding streamlines approvals through automated scoring and fraud-resistant trade reference checks. 
2. Predictive debtor monitoring provides real-time insights into account health and cash flow impact. 
3. Seamless integration ensures credit tools work effortlessly with ERPs, CRMs, and accounting platforms, eliminating duplication and data silos. 
4. User empowerment through training and intuitive dashboards boosts adoption and confidence across teams. 
5. Compliance is built into every process and safeguarding both business and customer data.

Building the Case for Change 

When CFOs and credit leaders champion modernisation, the business case becomes clear and compelling. Predictive analytics and continuous monitoring can reduce write-offs by up to 30% (Deloitte, 2025), while faster approvals accelerate sales and shorten onboarding cycles.  

Automated audit trails strengthen compliance and streamline workflows free up talent to focus on growth and strategy. In short, modernising trade credit isn’t just about efficiency — it’s about resilience, agility, and unlocking new opportunities in a rapidly evolving market. 

The Trade Shield Perspective 

Trade credit isn’t just about protecting against loss. It’s about enabling growth with confidence. In 2025, the real risk isn’t adopting new technology, it’s standing still. 

Trade Shield exists to help businesses overcome barriers, transform onboarding, and gain real-time control over their debtor books. The result: faster approvals, lower defaults, and healthier cash flow.