Who Needs to Know?

I've had a number of conversations with financial people who are fearful about asking their customers for financial information. They're afraid of the responses back from the customers: "Why do you need this information?" "What will you be doing with it?" Credit Managers need to remind the customers that they're providing hundreds of thousands, even… Continue reading>

Who is Your Customer? Are you Sure?

Customer concentration is a huge risk for all size companies, but especially small businesses. Not only does concentration give too much power to the big customer in negotiating, but it usually results in lower margins. In the case where the customer isn't an "A+" credit, that concentration can be deadly. Companies sometimes fail to fully… Continue reading>

Fear of the “Money Talk”

When finding solutions for clients to improve cash flow, we find a common theme in most organizations: the crazy fear of talking to their customers about money. Sales trainers will say that the fear of "The Money Talk" causes many sales people to fail. If the customer doesn't have a budget, can't afford what you're… Continue reading>

Creating a Low Risk Credit Portfolio

Many mid-sized businesses can name their top ten customers by sales volume but have no simple way to determine their top ten biggest credit risks. If you’re in one of these companies, you may feel it’s inevitable that you’ll have to write off a certain percentage of sales as bad debt. Mind if I shock… Continue reading>

Finding Cash in Your Credit Department

Most mid-market companies understandably focus far more effort on sales than on their credit management. You may think the best way to bring in more cash quickly is to increase your sales; you’d be surprised how much cash you can find when you look inside your own credit department. During the Recession, we saw more… Continue reading>