Business Practices Archive

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. 

Collecting payment can be a hassle, no matter who you are. There’s nothing more frustrating for B2B credit professionals than collecting payment from customers with outstanding debt. Before thinking of sending a customer to collections—or worse, court—you have the option of sending a demand letter to communicate the severity of the issue and help prompt payment. 

For most credit managers, a credit application is a vital step in the credit approval process. It’s a document that neatly outlines all the pertinent information that a credit manager needs to know about their customer, from its corporate legal name to the number of years they’ve been in business. No step epitomizes the oft-repeated mantra of credit management, “Know Your Customer,” quite like the credit application.

As a credit professional, a large part of your job involves engaging with customers–whether they’re next door or overseas. However, the task of properly identifying a customer can be challenging when businesses operate under similar names, use DBAs (Doing Business As) or are part of a parent-subsidiary structure. Why it matters: With each new customer, it’s essential to not only understand their business but also confirm their legal identity as a formal entity in a process called, “Know Your Customer”(KYC). Knowing who your customer is from the start is paramount in assessing risk, prote…