Archive for the ‘Blog Posts’ Category
Does Bankruptcy Mean Automatic Denial for Extending Credit?
Thursday, January 9th, 2020When 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…
Sales and Credit Departments: Working Together for a Common Goal
Wednesday, July 31st, 2019In a B2B environment, the sales and credit departments represent two different perspectives on growing the business. Sales wants to sell products or services to any interested customer. The credit department wants to make sure the sale represents revenue rather than uncollected debt. Although both departments are critical to the financial health of the organization,…
Choosing the Right Credit Management Partner
Thursday, May 30th, 2019Does your company offer lines of credit to customers? Being able to conduct business by providing customers with credit options opens your company to important opportunities for better business relationships, cash flow, and growth. But that’s only if your credit accounts stay in good standing. If they don’t, your business could experience major financial turmoil….
Best Practices for Improving Your Commercial Credit Risk Management
Thursday, April 25th, 2019Most businesses must deal with credit risk. It’s unavoidable, but that doesn’t mean you can afford to ignore it. Although credit risk can’t be eliminated, it can be managed and mitigated through sound commercial credit risk management practices. Whether you’re the sole member of your credit management department or you work alongside a team of…
How Well Are You Managing Your Commercial Credit Portfolio?
Thursday, April 4th, 2019Do you know which of your B2B accounts are the most profitable and which are the riskiest? Do you know which accounts are consistently paying late? Do you know how much you can grow your business without incurring unacceptable credit risk? Do you know how to better protect your company against bad debt in the…
How to Request Financial Statements of Commercial Customers Ordering on Credit
Thursday, December 20th, 2018Commercial credit is a preapproved sum of money issued by suppliers to companies seeking to establish an open-ended, continuous business relationship with their suppliers. Widespread and commonplace, commercial credit is used to fund everyday operations, can be accessed by the borrower at any point, and is usually repaid within common terms like “Net 30.” Like…
How Should You Respond When a Customer Asks for Extended Payment Terms?
Thursday, December 6th, 2018Throughout history, credit terms and the way they’ve been offered have changed depending on the strength of the economy. For example, during the Great Recession, many credit managers found that their commercial customers needed extended time to pay their invoices. Businesses and individuals alike struggled to survive in the difficult reality of the stagnant economy….
A Quick Introduction to the Mechanic’s Lien
Tuesday, March 20th, 2018It isn’t uncommon for credit managers to provide services or products to customers on credit. But when subcontractors complete work only to discover that their payments won’t arrive as agreed, credit managers need to act. On construction projects, one good place subcontractors and suppliers can start is obtaining mechanic’s liens. Timely filing is key Most…
What is OFAC?
Thursday, October 19th, 2017What is OFAC and what does it do? The Office of Foreign Assets Control administers and enforces economic sanctions programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. The sanctions can be either comprehensive or selective, blocking assets and enforcing trade restrictions to accomplish foreign policy and national security goals….
Ever Thought of Outsourcing Your 60- and 90-Day Receivables?
Monday, September 18th, 2017Slow-paying customers are not fun to deal with, and tracking them down is even less enjoyable. But to recoup what you’re rightfully owed, you’ve got to do so much more than send simple reminders or wait for them to be another month late before sending them to collections. Working to receive these payments, of course,…