Credit tips for 2014
Start 2014 by reviewing your credit management processes and procedures.
Here are some practical tips:
- Undertake a Situational Analysis to understand your working environment better;
- Identify your stakeholders and evaluate their interest and influence on the credit function;
- Customers should always be the fulcrum of your firm;
- Know Your Customers and understand your customers' needs and expectations;
- Use effective and efficient Information Sources - MACM provides 24X7 Credit Management Information System;
- Segment prospective customers in order to target your preferred markets/niches profitably;
- Try to say 'Yes' to profitable sales - that's the main reason why firms grant credit!
- Issue Timely, Accurate, Complete and Easy to Understand Invoices;
- Manage your cash flow effectively - no firm can survive with poor cash flow management!
- Categorise your credit customers according to their paying behaviour and take proactive actions as appropriate - Manage and Monitor your Overdue Accounts;
- Always remember that firms do not compete only when they are selling but also when they are collecting money from their customers;
- Find ways to improve internal processes to reduce the costs of running the business;
- Strive to achieve and sustain competitive advantage in the market;
- Always measure the performance of the credit function and take effective corrective actions.