Category Archives: Credit

This category covers commercial / business credit issues

Credit Reporting Errors And What You Can Do About Them

Did you catch that story on 60 minutes last week documenting the frequency with which credit reporting errors occur?  If you didn’t, you really missed an eye-opening report.  Here’s a synopsis that details the report nicely. How much do you … Continue reading

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IMPROVING CASH APPLICATIONS

A cash applications specialist records client payments in appropriate accounts, identifies and resolves payment discrepancies and answers client inquiries as needed. The specialist also resolves customer complaints, issues receipts, and refunds and computes bills using calculators or cash registers. Historically … Continue reading

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The Relationship between A/R and Credit/Collections

There are times when I’ve seen job listings for accounts receivable personnel versus credit / collections personnel. I thought I’d take a moment to discuss how the two functions work within the accounting cycle.   When a business decides to … Continue reading

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SIGNS OF A WELL THOUGHT OUT CREDIT / COLLECTION SYSTEM

You and your staff have had enough. You can take it no longer. That antiquated system your company has been hanging onto since the 1980’s has got to go!  The problem is how should the new system function? How can … Continue reading

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WHEN TO SAY “NO” TO A CUSTOMER

The customer is always right, right? Wrong. But they are vital to the survival of your business.  If a customer believes that they are correct, guess what? They are.  Perception becomes reality. There’s an old saying, “All money ain’t good … Continue reading

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WHEN THE ECONOMY GOES SOUR DOES YOUR COMPANY BECOME LESS RISK AVERSE?

I remember my manager coming to me and saying our CFO wants to loosen our credit guidelines a bit in order to increase sales. That always concerned me but I knew the reasoning was sound.  It certainly worked and I … Continue reading

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Who puts your customer on credit hold? Sales or Credit?

In the world of credit things are always changing.  Yesterday’s stellar customer is today’s problem account.  Example: The Recalis Corporation has been doing business with your company for years and reliably paid within 25-30 days of the invoice date. However, … Continue reading

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The Credit Application…the #1 Tool in your toolkit

Your customer is requesting an extension of credit from you.  In order to grant credit your company needs certain information. Different organizations require different information in order to feel comfortable. How does your company view your credit application? Is it … Continue reading

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Pardon me, Mr. Customer, but can I trouble you for your financial statements?

Many customers labor under the misconception that providing financial statements is something to be done at their convenience.  I totally understand the desire to keep private financial information close to the vest. But there usually comes a time in the … Continue reading

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Top 10 Financial Ratios For Credit Professionals

The use of financial ratios can be incredibly useful tools when determining the strength of companies you are doing business with or are considering doing business with. Although there are literally dozens of these financial ratios to choose from these … Continue reading

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