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.
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.
+ 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.
+ 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.
+ 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.