Business Credit Management On The Road- Customer Visit Best Practices

business credit managementWe recently wrote about companies who send credit managers on the road to meet customers and how it can improve business credit management relationships and results. Whether you’re vising a customer to introduce yourself, to solve a problem, or evaluate a request for a chance in their credit terms or limits, there are some things you have to remember. Here are some of the major do’s and don’ts of an accounts receivable customer visit.
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Visiting Customers to Improve Accounts Receivable Collection

Accounts Receivable CollectionWhile there are many debt collection techniques that you can employ from the comfort of your own office; such as sending a timely collection letter, implementing collection software to eliminate inefficiencies, and more. But have you ever thought about leaving the office to visit a customer? This is something that not every Credit Manager does, but for larger or riskier accounts, it’s proven to be an effective way to build relationships that help you get paid on time, reduce write-offs, and improve cash flow.
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Information to Gather Before Calling A Lawyer to Collect Overdue Customer Invoices

Calling A Lawyer to Collect Overdue Customer InvoicesTry as you might to avoid invoice disputes and non-payment situations with your customers, you may eventually find yourself ready to call a lawyer when you need to collect overdue invoices from customers.Those hourly charges from your lawyer add up though and many of those hours are spent gathering information about the invoice and customer in question. You already have that information, so before you hire them on for the job, pull all the info together to give them a head start on the case and save yourself some billable hours.
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Becoming a Better Business Credit Management Professional

Business Credit Management We recently started talking about how good credit managers can become great ones by making a few small changes in the way they work. In a previous article we discussed how looking at your role as a credit manager as more offensive than defensive can help you protect the organization while also increasing the bottom line. In this article we’ll talk about another aspect that seperates a good business credit management professional from a great one- data accessibility.

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Do You Have What it Takes To Be A World-Class Credit Manager?

business credit managementAre you good credit manager or a great one? A good credit manager is one who is able to put out fires, tackle problems as they arise, protecting against unnecessary financial risk and get at least something out of a customer who won’t pay their invoice.  A great credit manager is proactively avoiding fires and disputes in the first place; simultaneously mitigating risk and using credit sales as a way to improve profitability. Everyone wants to be great at what they do, but it’s not something that just happens, it takes work. But stepping up your game is possible when you make an effort to exude the qualities of a world-class credit manager.

In this mini-series, we’ll share some of the qualities that make good credit managers great and share some tips on how you can get there.  First up, let’s talk about your mindset.
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Business Credit Management and Your Industry

Business Credit Management It is important to understand how credit works in your specific industry and geographical area, otherwise you may be benchmarking your performance against data that just doesn’t make sense. By knowing how your metrics and accounts receivable key performance indicators measure up to others in your industry and location, you can compare your KPIs against averages and use that information to identify your strengths and weaknesses, set more competitive credit terms, and more. But how can you figure out what makes sense for your particular industry or location? Here are a few suggestions and resources to help you get started:

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The ABC’s of Business Credit Management: Credit Report vs. Credit Score

In a previous blog we touched on the basics of credit risk management, why it matters, and what you can do to improve your processes around it. This blog covers credit reports and credit scores, two documents that play an important role in business credit management; but do you know the difference between the two? Maybe, but let’s do a quick recap just to be sure. Put in the simplest terms, the relationship between the two is very similar to understanding the relationship between a report card and grade point average (GPA) in school, but let’s dig a little deeper:
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One Major Question to Ask Yourself for Improved Business Credit Management

When was the last time you took a look at your business credit management strategy?It is easy to get stuck doing the same old thing just because it’s what you’ve always done; but what worked for yesterday, does not always work for today. If you find yourself short on the cash you need to grow your business and/or have a hard time getting customers to pay you on time, there is one critical question you need to ask yourself to ensure you’re making the best credit management decisions. Who are you as a company today? Continue reading