The credit insurance broker said its Aon Trade Manager initiative will help set credit limits using a company's own customer trading experience and financial data from ratings agencies.

Stuart Lawson, head of Aon Trade Credit in the UK, said: "It's vital that companies of all sizes take steps to protect against credit risk by reinforcing the credit management function through monitoring customer payment performance on a daily basis, coupled with up-to-date financial data.

"In addition to preventing bad debt, Aon Trade Manager is a proactive way of identifying reliable customers to help boost revenues and improve working capital."

Aon Trade Manager takes an automated daily feed of all invoices, payments, credit notes and customer details directly from a client organisation’s accounting system. 

It then provides a range of diagnostic tools to assess how the credit risk is changing and, in turn, how to adjust credit limits or even stop trading with a particular customer.

Also see: Aon: government must help firms hit by withdrawal of credit insurance