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Commercial Credit Services

Updated: Mar 8, 2020

Q: What is the most effective way to increase sales for your Company?

A: The answer is to increase existing Customer Sales with the help of a Credit professional.


Salient Points:

1. Limits are often understated, do not reflect management tolerance for risk.

2. You do not have to mine existing or dormant Customer: A Credit Pro can evaluate existing limits, or inactive accounts and adjust them for tolerance.

3. Hiring and training a Sales Professional or buying ineffective marketing tools, with unfavorable terms, cannot yield results as efficiently.

4. A Credit Pro can mend fences and liaison with the Customer to build the

information needed to restore credit standing.

5. A Credit Pro can create an action plan to secure transactions or move from

secured to unsecured.

6. A Credit Pro can build a portfolio profile to leverage good credit risk against

moderate credit risk

7. A Credit Pro can identify high risk in your portfolio so you can start to mitigate that risk and make it available to other accounts.


Overview of Services

+ Remote or onsite presence with access to current tool.

+ Negotiable service rates.

+ Establish 'financial and credit analysis' and scoring procedures.

+ Evaluate or recommend credit resources.

+ Provide a supplemental analysis and scoring tool.

+ Portfolio analysis and assessment report.

+ International trade strategies and recommendations for minimal risk.



Service Categories:

Portfolio Analysis

+ Prioritize accounts and review top down.

+ Determine Corporate risk tolerance.

+ 'Credit and financial review' of accounts that is repeatable on an annual basis.

+ Direct Customer contact to get initial and periodic financials.

+ Compile scorecard results and credit analysis for approval.

+ Identify actual or perceived risk and set mitigation strategies.

+ Identify opportunities to increase limits (and sales), within risk tolerances.


Credit Process Review

+ Establish a standard credit review process.

+ Evaluate credit tools, providing recommendations.

+ Introduce and train on financial analysis scorecard and tool.

+ Set 'go-forward' review strategy, checklist and reporting.

+ Work with Sales to establish support for the credit process.

+ Develop visitation expectations and strategies.

+ Develop alternatives to open credit to mitigate risk.

+ Train on all aspects of international credit and instruments.

Collections

+ Establish good listening skills to assess risk and viability.

+ Establish a legal mindset for bankruptcy, collections, and security interests.

+ Promises, payment plans, and follow up.

+ Establish benchmarks and aging analysis.

+ Reporting trends and monthly results.

+ Collaborating with Sales without turning ceding collection ownership.

+ Visitation and on-site observation.

+ Effective placement of accounts: Age of the receivable is only one factor.


Management

+ Establish actionable and metrics-based policies and procedures.

+ Manage and report reserves.

+ Develop employee trust and empowerment.

+ Communicate effectively to management.

+ Reduce costs by auditing credit tools and other services.

+ Communicate risk, and understand management tolerances.

+ Forecast cash and spending.

+ Approval hierarchies and proper documentation.


Order to Cash Services

+ ERP integration business-side leader for credit, collections, credit master, customer master, billing, and cash application.

+ Lockbox integration business-side leader.

+ Billing processes, credit application and Customer facing documents.

+ Collection software rules establishment based on Customer and risk.

+ Report building: Forecasting periodic cash receipts and AP costs.

+ Borrowing based, ABL calculations.

+ Process documentation.

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