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Credit Management

Managing Credit Effectively – A Contribution By Josef Busuttil, MBA (Henley), DipM MCIM, FICM

A compendium of studies argues that repeat selling is much less expensive than selling to new customers. Hence, gaining and sustaining long-term customer relationship is important to minimise the cost of running a business.  This may entail selling on credit to satisfy the needs and expectations of customers, which sequentially requires the necessary resources to manage this credit effectively in ... Read More »

Credit Management Recommendation of the Month: Tell Your Suppliers to Share Data

If Your Company Needs a Better Credit Score?  Tell Your Suppliers to Share Data Companies of all sizes looking for a better business credit score and cheaper financing should ask their suppliers to report their accounts receivable data to credit reporting companies, according to the National Association of Credit Management (NACM). Tightened access to credit in the wake of the ... Read More »

European Risk Climate: More than 25% of European Business Failures are the Result of B2B Customer Defaults

B2B credit risk exposure is now at the top of C-level priority concerns.  According to Tinubu estimates, customer receivables represent more than a third of a B2B company’s assets. More than 25% of business failures in Europe are the direct result of B2B customer defaults. Write offs of bad customer debt have grown from an average .5% of revenues to ... Read More »

Why Trade Credit Matters – Understanding Supply Chain Finance in Today’s World

Global Business Intelligence recently published its third edition of their Supply Chain Finance (SCF) Payable and Receivable Solutions Guide.  This Guide is designed as educational material for the Corporate world to help those with Credit and Sourcing responsibilities better understand ongoing developments around trade credit and supply chain finance.  David Gustin, President of Global Business Intelligence and author of the ... Read More »

Lenders Cautious about Prospects for Residential Mortgage Markets

New Efma-CRIF study provides insight into possible impacts of the European Commission’s proposal for a directive on credit agreements relating to residential property; reveals significant fragility in residential mortgage market.​ CRIF, a global company specializing in the development and management of credit reporting, business information and decision support systems, and Efma, the retail financial services community, today published a new ... Read More »

Credit Management: The Name of the Game is to Ensure Sound Cash Flow

Today’s business environment is characterized by homogenous products and services with little scope for differentiation, supply exceeding demand, more knowledgeable customers, free market economy, e-commerce, highly competitive markets, high cost of doing business, and lower profit margins. Customer loyalty is something of the past and it has become a hard nut to crack to maintain market share, let alone increase ... Read More »

The Case for Continuous and Systematic Monitoring of Business Relationships

As business relationships continue to expand globally and in complexity, monitoring and analyzing business partners and clients takes on added importance. Portfolios are increasingly diverse and comprised of partners from all corners of the globe, each of whom, can have a direct impact on credit default risk. The business environment is mandating cost reductions interestingly at a time when proactive ... Read More »

Five Ways to Reduce Your Days Beyond Terms

Late payments are the silent killer in every business. The longer a business takes to pay its bills has a direct affect on your profits.  A 10% profit margin quickly erodes with every month that passes before you get paid. In short, late payments cost you money. But by taking a few measures to lower your Days Beyond Terms (DBT) ... Read More »

Smaller Businesses, Credit Services Staying Ahead of Fraud?

As the recession took hold a few years back, fraud attempts surged. And some studies, like one released last week by Prolexic Security Engineering & Response Team, found that attempts still are continuing at alarming rates. The Prolexic study noted a massive jump in attempted attacks against its financial services clients during Q4 2011 and Q1 2012. However, that doesn’t ... Read More »

Trends in Credit Management: Bringing Finance & Sales Together

Building an effective credit risk management function in a company often puts credit risk management in conflict with the sales department.  For a company to maintain profitable growth and be liquid it is essential that both departments work hand in hand. Marcel Wiedenbrugge, founder and principal of WCMConsult discusses the aspects of bringing Finance and Sales together.  To read this ... Read More »

China Credit Risk Management: Sinotrust Comments on Key Principles

Sinotrust perceives that around 80% of the doubtful accounts in China actually result from negligence and inadequacy in proactive measures, and the rest 20%, even being collected through legal action, cost much more than the accounts paid in.  Building an effective credit risk management function in a company often puts credit risk management in conflict with the sales department. Fu ... Read More »

Code of Conduct for the Credit Insurance Industry

The financial crisis has revealed the weaknesses of the credit insurance product.  The sudden withdrawal of credit limits caused consternation amongst customers.  The business communities and the professional federations experienced that the credit insurance product needed renewal and a think tank was therefore created: the “Credit Management Think Tank”. The think tank acts as a breeding ground for innovative ideas ... Read More »

Asia Risk Professionals Congress to Tackle Risk Management Challenges

Research leading up to the congress was that Asia has its own approach to risk, governance, compliance and audit.  Businesses here will not adopt a “one size fits all” global risk policy and will localise global principles to meet local risk conditions and requirements. Understanding the distinct characteristics of local cultures is therefore vital if Asia is to learn from ... Read More »

Experian Opens North American Global Consulting Practice

Consulting organization takes the guess work out of business decisioning – Experian’s consultants to help clients enhance credit management strategies across their consumer and small business portfolios and the customer life cycle. Experian® announced the expansion of the company’s Global Consulting Practice that will provide its customers in the North American market with analysis, powerful insight and valuable recommendations that ... Read More »

Sinotrust: Credit Risk Management Seminars Help to Manage Risk in an Inflationary Economy

Sinotrust held a series of seminars themed Whole-process Credit Risk Management under an Inflationary Economy 2011 in Beijing, Shanghai and Guangzhou respectively, which were observed by executives and experts from venture capital, credit control and financial sectors in Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. In light of complicated economic situation and inherent characteristics of credit management in China, Sinotrust ... Read More »