Dares to keep expanding with small credit losses

Although the tyre industry is notorious for bad payers, Däckia has dared to continue growing without exposing itself to large credit losses. This, thanks to its clever, decentralised credit work, assisted by Soliditet. Däckia was brought under new ownership in 2009, and has been rapidly expanding ever since. This expansion is mainly due to company buyouts, which involve thorough checks performed by Anna Brunell, Customer Support Manager, and her team of five colleagues, who have a sound knowledge of credit issues.

“With help from Soliditet’s Solsidan portal, we look over the companies’ accounts ledgers, and, in particular, the ratings of their commercial customers. However, we have even acquired companies who have a number of customers holding the C rating, since we have subsequently been able to structure their credit work using Decision Support,” explains Anna.

This is exactly what Däckia has done at its 80 workshops throughout the nation. The staff out at each workshop carry out their own credit checks, and are able to take the vast majority of credit decisions themselves. They just enter the corporate identity number into the system, and get an instant answer. Most cases are approved, and a suitable credit limit is also provided.

“However, every day, we get a handful of questions from our workshops. Our credit template is quite strict, as unfortunately, our industry is fairly notorious for bad payers.”

Not even AAA companies are automatically approved. From experience, Däckia is aware that even rock-solid companies can be acquired by jokers, and for this reason, it keeps a close eye on changes within the board of directors.

“However, it’s unusual that we wouldn’t sanction an AAA company to purchase on credit. By and large, the rating is an extremely reliable tool,” says Anna.

Changes in board composition are also an important parameter in Däckia’s monitoring of its approximately 50,000 commercial customers, the largest of which are leasing companies of various types, in addition to deterioration in ratings and negative patterns in the Paydex payment index.

However, with help from the Solsidan portal, quick decisions can be reached, allowing Anna and her team to focus on other tasks within Däckia’s unusually horizontal organisation, where the principle of mutual support rules supreme. When it comes to tyre changes, Däckia’s busiest period falls between spring and autumn.

“But by being pro-active, we are able to spread the workload fairly. An increasing number of tyres are ordered, or sold, long before they are changed,” adds Anna.

Facts about Däckia

Däckia AB is one of Sweden’s largest tyre service chains, serving both private individuals and companies. The chain comprises 80 Däckia workshops and 80 partner-workshops, from Ystad in the south to Kiruna in the north. Däckia’s wide assortment includes tyres for everything from heavy equipment to wheelbarrows.

The company’s success story started in 1965, when Ringcentralen i Bollnäs AB established a tyre retreading facility (which now produces around 25,000 tyres a year). Däckia began trading under its present name in 1994. Since 2009, Däckia has been owned by the Swedish private equity fund Procuritas Capital Investors IV.

Feel free to read more at www.dackia.se


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