Credit Management

Cash Flow and DSO

May-01-2008

Cash flow – when it slows down or stops, so does the health of your business. This article provides a clear and practical application that will help credit professionals avoid a major "cash trap" and contribute to the overall health of their company.

Six Essential Elements of an Effective Credit and Collections Policy

Apr-28-2008

Been putting off drafting a credit and collections policy because you’re not sure where to start? Or maybe you haven’t updated yours in awhile and need to make improvements to get it in step with the current business climate? Here’s what you need to get started.

Credit Crunch Increases Reliance on Trade Credit

Mar-31-2008

As current credit difficulties increase, businesses seeking alternative sources of working capital are expected to request extended credit terms from suppliers.

Accounting for Uncollectible Accounts

Mar-31-2008

Sarbanes-Oxley has raised the bar for accuracy in valuing and reporting assets. So how do credit managers meet the challenge when it comes to account receivable?

Getting the Most Out of Your Credit Applications

Mar-05-2008

Do you use credit applications for every sale? You should. Here are six must have elements you need to include to create one of the most powerful credit and collections tools you have – an effective credit application.

Hello? Do You Speak English?

Oct-24-2007

Hello. Do you speak English? An increasing number of emerging markets don't. Here's some food for thought for companies looking to extend their global reach.

Reducing Delinquent Accounts

Aug-30-2007

Nine practical tips to help small businesses reduce delinquent accounts.

New LC Rules Take Effect July 1st

Jun-27-2007

The first revision of the rules effecting Letters of Credit since 1993 has at long last been approved. Here's an overview of the UCP 600 together with highlights of some important changes this latest revision incorporates.

Collections Outsourcing RFP

May-22-2007

Need to develop an RFP seeking 1st or 3rd party collection services? Here's help. A complete sample outline that will guide you in creating an RFP that will equip you with the information you need to select the right service provider.

Reliability of Financial Statements on U.S. Firms

Apr-25-2007

All financial information is not equal. Find out how to assess the reliability of financial reports provided by your potential customers.

Export Trade to Latin America

Apr-24-2007

What does a company need to have a firm grasp of when looking to extend its global footprint into the major economies of Latin America? Patrick O. Connelly, Ph.D. suggests the answer lies close to home.

It Isn't Just the Four Cs of Credit Anymore

Mar-28-2007

Robert Schultz, consultant with Quote-to-Cash Process Consulting, introduces Five Cs of Credit Management and thirteen tips to facilitate a successful cross-functional improvement process in the credit management environment.

Trade Credit Insurance Primer

Dec-28-2006

Credit insurance can help mitigate your risk when a customer defaults on a credit obligation due to commercial or political reasons.

D/P, D/A and International Sales Transactions

Sep-25-2006

Looking for a middle ground of risk between Open Account and Letter of Credit transactions, those engaging in international sales may want to consider Documents Against Payment and Documents Against Acceptance.

The Rules for Letters of Credit are Changing!

Aug-25-2006

In less than a year, the rules governing almost all commercial letters of credit is scheduled to undergo a long awaited revision. Don Smith, V.P. Client Services at Norman Technology, offers a sneak preview and some valuable resources.

Final and Binding Arbitration

Aug-25-2006

Interested in speeding up your international recoveries and reducing your expenses in the bargain? ABC-Amega's David Greenberg gives practical information on how final and binding arbitration can do just that.

International Sales Contracts

Aug-24-2006

With today's ease of access to multinational markets and Internet-generated commerce, just about every company has become involved in international trade in one way or another. But not many understand how international law effects their sales transactions.

Business Credit Fraud: Let the Seller Beware

Feb-20-2006

A degree of trust is essential in business transactions involving credit. But trust should never be mistaken for blind faith. The best course of action is described in President Reagan's now famous, "Trust, but verify."

The Ins and Outs of Cash Flow

Oct-21-2005

This article by Veena Gundavelli, CEO of Emagia Corporation, discusses cash flow management and what cash flow statements reveal about the over-all financial health of companies.

Credit and Collections in the U.S.

Sep-28-2005

Almost every company worldwide has an eye toward selling to the U.S. market. Exporters need to be aware, however, of challenges presented by the American approach to buying on credit.

Negotiable Instruments

May-31-2005

Cashier's checks, certified checks, money orders -- an explanation of the basics together with some important facts you should know about these frequently used negotiable instruments of payment.

Comparing DSO Figures

Apr-26-2005

If your DSO calculation is based on A/R that includes sales tax and finance charges, are you getting an "apples to apples" comparison with other firms in the industry?

Using DSO to Measure and Manage Collection Efficiency

Feb-23-2005

For many collection departments Days Sales Outstanding is used as a basic measure of performance. Understanding the strengths of various DSO calculations and their usefulness as financial indicators requires a closer look at this familiar tool.

Getting Results with Industry Credit Groups

Dec-20-2004

Is there a better way to get credit information on prospects and clients than the traditional generic trade report? Yes. Read to find out about getting the most current, industry specific credit information through industry-specific credit groups.

Three Essential Steps to Getting Paid on Exports

Nov-17-2004

The principles presented in this article by Romelio Hernández of HMH Legal provide useful applications for international trade.

Credit Insurance Q&A

Oct-21-2004

Answers to common questions about business credit insurance coverage.

Improving Your Chances of Collecting from a Risky Customer

Sep-23-2004

Nicholas D. Krawec of the Bernstein Law Firm offers suggestions to those looking for ways to minimize risk and improve the likelihood of receiving payment from customers.

Resolving A/R Disputes

Aug-19-2004

A large percentage of accounts submitted for collection are the result of unresolved disputes and deductions. Here are some practices that may help avoid some common dispute and invoicing problems.

Credit Insurance: a Global or Local Policy?

Mar-18-2004

Should you go with global coverage by a single credit insurance provider or opt for a more local structure using several regional providers?

Who is Your Customer?

Jan-22-2004

We turn the tables and ask you the question, Who is Your Customer? And it's one you'll need to be prepared to answer when you run into payment problems on an account.

Credit Extensions are Loans

Jan-22-2004

When selling on account, why do many credit grantors shy away from one of the most effective tools for limiting credit risk? Find out how getting back to a credit basic - the credit application - can help you improve the collectibility of your accounts.

Setting a Reasonable Credit Limit

Nov-23-2003

Once you've determined to go forward with selling to a customer on credit, there are three calculations that can help you determine a credit limit that is both fair and appropriate.

Selling without Financials

Jul-17-2003

What can you do to develop a more complete risk profile for a customer who refuses to submit financials and whose credit report yields no information? We offer some suggestions that you may want to consider before you decide to kill the sale.

Sales vs. Credit

Jul-17-2003

In the classic style of sibling rivalry these two corporate family members appear to be in a constant push-and-shove. Is there any way to help them shake hands and agree to work together? Here are a few ideas that just might help.

Selling to a Company Losing Money

Jun-19-2003

How should credit managers approach doing business with a company that is losing money and needs open account terms? While each customer presents its own challenge, here are some practical tips to help.

Credit & Collection Policy Basics

Jun-19-2003

What can you do to help your organization revive its credit-to cash process? Developing an efficient and effective credit policy - and sticking to it - is a good beginning.

Four Keys to Effective Credit Management

Apr-24-2003

Managing the trade credit function begins with the decision to extend credit - but the process doesn't stop there. No sale is complete until the receivable is paid. This article outlines 4 keys to making sure credit sales ultimately turn into cash.

China: Credit for the Future

Mar-14-2002

Having a predictable, systematic approach to credit and receivable management is only recently understood as necessary in China. However, in view of the rapid growth of the Chinese economy, principles of credit management are bound to be embraced soon.