Yes, you need a Written Credit and Collection Policy Many companies do not have a written credit and collection policy because they believe it is more trouble than it is worth. One of the benefits of a written policy is that it can reduce bias and subjectivity in the credit decision process. If your company […]
As the U.S. economy continues to slowly recover from the recession, a number of businesses continue to have difficulty and fail. It becomes problematic for the credit department when a customer’s account becomes past due and the creditor does not have a current credit application on file. About eighty percent of bad debt, according to […]
Obtaining a signed credit application is an integral part of extending credit to a customer. The application provides the information necessary to help determining the credit risk and to establish a credit limit. It also authorizes you to contact the bank and trade references and agree to your terms. A credit application should include the […]
Are you creating repayment terms for a past due customer? Do it on a promissory note! When you have a past due receivable a decision needs to be made. Is it beneficial to your company to try and work out payment arrangements on their past due account or should you refer their past due account […]
The results of a recent survey of members of the Commercial Collection Agency Section (CCAS) of the Commercial Law League of America (CLLA) show that at three months delinquent, 30% of accounts receivable will not be collected; at six months delinquent, over 45% of accounts receivable will never be recovered; and at twelve months delinquent, […]
Many companies are experiencing a downturn in business as a result of our current economic conditions. Cost reductions are the key words and companies are looking at every avenue possible to reduce or lower costs. It is therefore more important than ever to manage your costs of doing business. While the credit approval and account […]
Business process outsourcing (BPO) is the process of hiring another company to handle business activities for you. Outsourcing has been around as long as work specialization has existed. In recent history, companies began using outsourcing to carry out narrow functions, such as payroll and billing. Those processes could be done more efficiently and therefore more cost-effectively, by other companies […]
