Mountain States Commercial Credit Management Blog
Stay informed with the latest news from Mountain States Commercial Credit Management
Managing Credit Risk During COVID-19
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The sudden and unexpected arrival of COVID-19 has thrown the economy into turmoil. Cash-strapped businesses may have to decide between paying employees, landlords, banks, or vendors. The inability to timely bill, collect overdue debt, and obtain supplies likely will hinder efforts to generate revenue and grow as well. There are a lot of unknowns ahead,… |
When Is a Payment Bond Claim a Better Choice than a Mechanics Lien?
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When a supplier or subcontractor doesn’t get paid for materials or work on a construction project, they have two options for securing payment: a mechanics lien or payment bond claim. Both are tools for claiming what is owed in case of a dispute. Although they are similar, there are key differences that will determine which… |
COVID-19: The Shock and Aftershock for Debt Collections
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What started as a global health crisis is now a global economic crisis as well — and the financial ramifications will likely be around much longer than the health ones. One thing is certain: It’s going to be a rocky road for the financial services sector, including the collections industry. There will be an increase… |
Leveraging Artificial Intelligence Throughout the Credit Management Process
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Artificial Intelligence (AI). It’s a hot topic, and to some, it’s can be a scary topic. The movies have not always portrayed AI in a very positive light, and in the workplace, many people are apprehensive that it might put them out of a job. In reality, AI has great potential to make their jobs… |
How to Address Requests for Extended Payment Terms
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When extending credit to a customer, the payment terms often will depend on the current economic climate. When times are rough, such as a recession or slow down, customers may need extra time to pay their invoices. In uncertain times like what we are experiencing with the current COVID-19 pandemic, you will likely see many… |
Accounts Receivable Management in the Construction Industry
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The construction industry is filled with challenges and risks of all kinds. One of the most serious for contractors and suppliers is getting paid. Because of the nature of the business, there is typically a lengthy time period between the delivery of the goods or services and the receipt of payment. This can be a… |
When Your Client Disputes Your Invoice
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Invoice disputes can interrupt cash flow and take time and effort to resolve. They also can damage relationships, if not handled properly. Here are some tips for managing your invoices and related disputes to reduce the impact they have on your business. Be proactive The best way to solve payment disputes is to avoid them…. |
Dig Deeper: Extending Credit Risk Management to the Customer’s Supply Chain
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Every business is vulnerable to risk as a result of its supply chain — from the companies it works with to the products and services it relies on and produces. So when your credit department is considering extending credit to a business, it’s important to dig deeper than just a credit-risk analysis — you also… |
Is a Seasonal Business a Good Credit Risk?
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Seasonal businesses are characterized by their short-term or seasonal peaks in operation. They tend to do significantly better during certain times of the year and experience lulls in between those times. For example, toy and jewelry retailers see sales jump at the beginning of the holiday season (Q4), whereas lumberyards and landscape outlets have their… |
Does Bankruptcy Mean Automatic Denial for Extending Credit?
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When businesses extend credit to commercial buyers, they are assuming a certain amount of risk, which is mitigated through sound credit risk management policies. Regardless of how diligent your credit approval processes are, you will inevitably have businesses that fall on challenging times and into bankruptcy. Refusing to extend credit to a business going through… |