Business Practices Archive

Days Sales Outstanding (DSO) is the most frequently reviewed key performance indicator (KPI) by upper management, representing the average number of days it takes a company to convert its accounts receivable (AR) into cash.

Credit management is a complex, multi-faceted career that relies on a host of cross-functional skills. Each day, credit professionals carefully assess unique problems to create solutions that protect their companies from risk without hindering growth. There is no specific path for a budding credit manager, and they can come from a host of different professional backgrounds.  

It’s no secret that companies across industries are grappling with the ripple effects of shifting supply chains, severe weather events, rising costs and mounting tariffs. This economic volatility can significantly impact businesses by creating unpredictability in customer behavior, supply chains and financial planning. 

In business-to-business (B2B) credit management, the sheer volume of data—from financials and payment histories to market trends—can overwhelm teams. Data automation and Robotic Process Automation (RPA) can transform these tasks, rapidly processing and analyzing critical information. By cutting down manual work, these tools enable faster, more accurate credit decisions while minimizing risk, making credit management smarter and more efficient. 

Economic uncertainty complicates the work of credit managers. As the changing tides of the economy become unpredictable, risk increases. Credit managers across industries have seen volatility in pricing, as wide-reaching economic uncertainties like tariffs, trade wars and supply chain issues send ripples across the economy. While price fluctuations are somewhat of a constant in the ever-changing world of business credit, it can still be difficult to predict and even harder to navigate.  

In the construction industry, getting paid can often be a waiting game. Any disruption in the payment flow—from the general contractor to the material supplier—may lead to significant delays in both payment and the overall project timeline.

Over the past decade, technology has transformed how credit professionals conduct business. Automation and artificial intelligence (AI) have streamlined tedious, manual processes, allowing credit professionals to focus more on strategic, value-added tasks. However, technological advances have also led to an increase in fraudulent activity within business-to-business (B2B) credit. 

Whether you are conducting an initial credit investigation on a potential customer or reviewing the credit line for a long-held account, commercial credit reports play an important part in the decision to extend credit to a customer. Despite their usefulness, many companies are hesitant to share their accounts receivable data to commercial credit reporting companies.