Credit management is giving credit to consumers, establishing payment terms and conditions that allow them to pay their bills on time and in full, collecting payments, and ensuring customers follow your company's credit policy. Effective credit management can protect your business from the serious implications of delayed or lost cash flow - the lifeblood of any business.
It's estimated that 20% of small to medium-sized business bankruptcies are caused by the customer's failure to pay their invoices which has the potential to have an impact on your creditworthiness. That is why credit and debt management are critical to the profitability of your enterprise. It ensures you are dealing with the right customers on the right terms; and that payments are being collected punctually to enable the business to operate. But suppose an invoice remains unpaid after several months, despite your reminders. In that case, it knows when and where to deploy third-party assistance, such as debt recovery specialists, to collect the outstanding payments.
CoCredo can provide access to an experienced panel of credit resource experts to help shape and manage effective credit performance. Our partners have worked with both in-house and outsourced UK and international environments and supported start-ups to Fortune 500 companies across various sectors. They will assist with creating tailored solutions to short- or long-term challenges and support their implementation. A virtual credit director arrangement is also possible.
Depending on your challenges and priorities, we can assist with the following credit resource solutions:
- Help resolve short-term receivables collection and credit issues
- Risk-rating your customer portfolio and recommending credit limits
- Comprehensive data reviews on specific companies across multiple sources
- Automation and Digitalisation advice
- Credit policy and department audit completions
- Designing credit policies and processes
- Developing KPIs and SLAs
- Advising on organisational capability and transformation
- Supporting and advising on outsourcing projects, such as debt recovery
- Involvement in automation projects and advising on credit-specific solutions (EG: digital documentation, automated credit management, collections of cash allocation)
- Advising on and developing credit insurance programmes
- Challenging credit insurers to improve and optimise insured limits
- Provide team training and mentoring
- Being the CFO’s sounding board and eyes and ears. Virtual senior credit manager or director
When properly implemented, credit management can immediately boost profits by eliminating late payments, enhancing cash flow, and decreasing Days Sales Outstanding (DSO). Having access to more available liquidity means having the ability to make shrewd business investments or acquisitions. It also helps to create a more favourable and professional corporate image.
If we cannot directly provide you with a credit resource solution, our network of connected partners can find positive outcomes to your challenge. Call us at 01494 790600 or drop us an email to find out more.