The Sobel Group’s Business Credit Management Program

Do you really know how much it costs to process your own business credit applications?

The Credit Research Foundation published a Staff Report on Credit Investigation, which included a Sequential List of Credit Information Sources and Costs.  This report refers to the in-house cost when processing your own business credit applications.  Some of those sources and costs, adjusted to inflation using Consumer Price Index calculations by the Bureau of Labor Statistics, are as follows:

Just contacting the references and reviewing banking information would bring your in-house costs to about $191.00 plus another $35.00 to obtain, review and analyze personal credit history, when there is individual liability for a total of $226.00.  And that does not take into consideration the due diligence required on each application.  You need to verify that the name on the application is their correct legal name or trade name.  Is the credit application and agreement signed by a person authorized to bind the Company to your terms and conditions?  If there is individual liability, did both husband and wife sign?  Is their professional license, if any, current and in the same name that appears on your credit application and agreement?  This is just part of the due diligence that is required on each application.  With The Sobel Group processing your business credit applications, the information received is investigated and evaluated, then returned to you in an easy to read report.  The Sobel Group, depending on volume, can substantially reduce your costs.

In today’s business environment, organizations are looking for new and innovative ways to streamline their organizations, focus on their core business and most importantly become more competitive.  All of this has made outsourcing one of the hottest trends in business today.

One of the most important tactical reasons for outsourcing is to reduce and control operating costs.  The Sobel Group’s extensive experience and access to The Sobel Group’s lower cost structure, is clearly and simply two of the most compelling tactical reasons for outsourcing the processing of your business credit applications to The Sobel Group.

For a free – no obligation – quote, complete our form on this site titled “How many applications do you need?”

Be sure to ask us about The Sobel Group’s Account Receivable Management Program.  It is an additional service available to our Business Credit Management clients.  Our program positions you to:

• Retain 100% of the past due balance recovered
• Have the customer remit directly to you so you have an immediate cash flow advantage
• Have the flexibility of determining how the customer is contacted (acting as an extension of your credit department, our goal is to minimize your losses and increase sales to those customers that are creditworthy.  If the past due customer is one that you want to retain, as long as they resolve their current situation to your satisfaction, you simply indicate that to us when you submit a copy of their application and statement).
• Not have to continue calling the customer yourself for 4 to 6 months, or more, because you do not want to give away 25% to 50% of your money to a collection agent or collection attorney.

Congratulations on your decision to reduce your in-house costs.