Credit Management

All successful business leaders know that they have to manage cash flow carefully and that effective credit management is essential.

This is particularly true in the current financial climate –when your customers and suppliers are also facing severe financial pressures of their own.

How can you identify potential problems before they occur? You probably already prepare and monitor cash flow forecasts - yet this may not be sufficient.

Consider the questions below - they give you an indication of whether you can make further improvements to your credit management practices and achieve sustainable results.

Key Credit Management Questions

Do you check the credit status of all your customers before offering credit?
Do you know which of your established customers are experiencing financial difficulties?
Do you have a credit policy which is clearly understood by your employees, as well as your customers?
Do your customers give you a clear commitment to meet the payment terms that you have agreed with them at the order stage?
Do you reward timely settlement?
Do you get all your invoices right? - A disputed invoice will not be paid.
Do you have clearly established processes for chasing late payments? Are they given sufficient priority?
Do you have a cost-effective way of managing bad debt?

If you cannot answer yes to all of these questions, then call us; let us show you how we can help!

Chrysalis Performance - assists companies in the review, development, implementation and continuous improvement of credit management practices to achieve leading industry standards, for example:

Creating effective credit policy and procedures
Developing systematic and rigorous processes, using automation where there is a clear financial benefit
Evaluating whether in or out-sourcing provides the best approach for you
Assessing staff capability and training requirements
Evaluating and advising on your credit risk
Developing and implementing of targets and reporting requirements for credit which give you effective control