Archive for the ‘Credit Management’ Category
Why You Need a Credit Risk Scoring System
Tuesday, April 27th, 2021If you rely more on judgment and gut feelings than sound credit practices when extending credit, perhaps it’s time update your process with a credit risk scorecard.
How to Address Requests for Extended Payment Terms
Thursday, May 7th, 2020When 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…
Dig Deeper: Extending Credit Risk Management to the Customer’s Supply Chain
Thursday, February 6th, 2020Every 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…
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…
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….
Your Credit Policy Is Important — Get It in Writing
Thursday, May 16th, 2019A business’s credit policy is an essential guide for how the business manages credit risk. However, if you don’t document your policy clearly, different people may understand or apply it differently — which can lead to confusion, inconsistency, and even legal problems. Here are some tips for creating an effective credit policy for your business….