Take Credit Management Seriously
Good credit management can cut costs, boost income, and free up cash. The key to good credit management is to decide what your credit policy will be and then implement it consistently.
Credit policy should not be too tight or too loose. If it’s too tight, the company will lose sales because credit analysts will be turning away customers or not approving them for all they would buy—and pay for—on credit. Overly aggressive collectors can alienate good customers in temporary trouble. On the other hand, if credit policy is too loose, the company will have difficulty collecting its money or, worse yet, have excessive bad-debt expense. Customers who don’t pay their bills are useless.
Credit analysts ...