Best Credit Risk Management Practices
Do too many of your customers become debtors?
Are you tired of late payments?
Strengthening your credit risk management system can help. This system helps you sell on credit while maintaining cash flow, promoting financial health, and reducing late or non-payments.
Here are some of the best credit risk management practices!
Before working with a customer, examine the company’s:
- History – How long have they been in business? Do they have a good reputation in your industry?
- Future – Does their future seem strong? How does the future of their industry look?
- Financial Health – Balance sheets and income statements can illuminate potential problems.
How can you discover this information before the company becomes a client? RSD can help you receive an Experian business credit report to see their financial health. For more information, RSD can work with several investigative resources to provide background checks, asset searches, bank account verifications, and many other kinds of investigative data.
Don’t Extend Credit without a Credit Application
Regardless of a customer’s size or reputation, don’t take a risk! A credit application can help determine credit-worthiness while also compiling the company’s data that you may need if they decide to not pay. Include your credit and payment terms in the application to ensure the customer knows your expectations.
Perfect Your Billing System
An effective billing system can minimize miscommunications, late payments, or non-payments. Be sure to keep track of all purchase orders, send invoices promptly, keep copies of documents, and send a statement of their account if they haven’t paid. In your invoices, provide instructions on how to pay and remind them of your payment terms.
Partner with a Debt Collector
At the first sign of non-payment, file a claim with your partnered debt collector. The debt collection professionals at Ross, Stuart & Dawson can do the work for you, so you can relax and continue growing your company!
Credit Collection Services in and Around Wyoming, MI
Credit collection services can include more than just debt collection!
RSD provides credit collection services near Wyoming, MI that include credit investigations, portfolio liquidation, credit policy creation, and can act as your legal liaison for litigation or settlements.
Contact RSD today to get started!