article thumbnail

Are Your Credit & Collection Policies Aligned with Company Goals?

Your Virtual Credit Manager

At many companies, credit policy is an afterthought. When sales and production goals are set, and then the budget formalized, scant consideration is given to the impact on credit policy. Photo by Piret Ilver on Unsplash ) Too often, credit and collections are an afterthought. Customers don’t pay on time.

article thumbnail

5 Accounts Receivable Collection Mistakes You Should Avoid

Gaviti

This mindset often leads to underinvestment in collections efforts, and when budget cuts are necessary, accounting departments like collections are typically the first affected. However, maintaining a steady cash flow is essential for business survival, and efficient collections directly impact the bottom line.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Effective Communication Strategies for Collecting Past Due Accounts

Your Virtual Credit Manager

Finding the time and resources to complete every collection activity needed to be done at the optimal time to be done is a constant challenge. Most small companies come up short because the owner or CFO have more important things to do and there isn’t a dedicated employee responsible for credit and collections.

article thumbnail

How Are Your Customers Doing?

Your Virtual Credit Manager

We often talk about the importance of having an efficient and effective collection process and how, from a process improvement perspective, collections automation provides substantial benefits. We don’t, however, want to minimize the importance of the credit side of the equation. Do you need help improving cash flow?

Bad Debt 130
article thumbnail

Tackling Customers that Always Pay Late

Your Virtual Credit Manager

A customer that pays on time does not require any collection efforts. Those who sometimes pay on time only require a collection effort when they pay late; getting them to pay is usually not difficult. Since they are abusing your credit terms, why not require them to pay with a credit card when they place an order?

Bad Debt 130
article thumbnail

Eight New Year’s Resolutions to Improve your Commercial Credit Management in 2025

Credit Management Group UK

2025 could be the year for your business to improve and grow, however this relies heavily on how effectively your commercial credit management runs. Improving your commercial credit management in 2025 1. Stronger business relationships can be built within these phone calls which is extremely beneficial when collecting payment.

article thumbnail

Navigating Credit Risk Management in Banking: The Future of Decision-Making and Receivables

Collenda

The Role of ESG in Credit Risk Management As stakeholders increasingly demand accountability in corporate practices, banks are called to align their operations with ESG principles.