Over the next couple of posts, we'll be looking at ways for credit managers or account managers to maximize their collections potential and become one of the most valuable people in their company.
Go Behind the Scenes or Look Behind the CurtainInterpreting creditworthiness from the start is a main goal of a credit manager. Running a credit check on potential customers is important, but what kind of check should be run. The normal reports from Dunn & Bradstreet provide generic, not always useful information. Here are some things that LienItNow's Credit Check department does that you may want to use yourself.
The length of time the company has been around.
If the company is still filing annual reports with their State of Incorporation.
The company's average credit line and hight available credit line
Average turnaround on paying bills in number of days.
The length of time with the company's current bank.
How long the company has been doing business with its trade references.
Try checking into those items and you may find yourself spending less time chasing money. Remember, the credit manager's job is to be proactive, rather than a reactive. In the next post we'll discuss securing your right to collect.