Last Updated 17 | 12 | 2013 at 16:03

Business & Technology

Credit tips for 2014

Article By:
di-ve.com news
editorial@di-ve.com

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.
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