From CBIA News, January 2003

How to improve your company’s credit management

One of every two businesses is tightening credit, according to a survey by the National Association of Credit Management. Slightly more than half (52%) of the nation’s credit managers who responded to the survey said they’ve increased their rejections of credit applications since February 2002. 

But tightening credit is not the only way to stem bad-debt losses. Based on nationwide surveys of credit management professionals, here are the five most popular ways to arrest bad credit and improve your company’s cash flow:

• Start managing your slow-paying and bad-debt accounts before they are beyond recovery.

• Take firm steps to identify high-risk accounts and learn how to recognize late-payers early.

• Strive to improve the working relationship between your credit manager and your sales force.

• Create credit standards that match your tolerance for risk and your company’s financial goals.

• Re-educate salespeople who routinely bring in accounts that don’t meet your company’s credit standards. 

[back to main article]