Business Practices Archive

Fraudulent credit applications are on the rise—a concerning trend in the B2B credit world. A recent eNews poll revealed that 44% of credit professionals have seen an increase in fraud attempts from new customers filling out credit applications.

Preliminary notices should not be overlooked in the complex world of construction and project management because they serve as the crucial foundation upon which the entire payment process hinges. A preliminary notice serves as a notification to the owner or general contractor of a construction project to notify them that a contractor, sub-contractor, materials provider or other party is reserving their right to file a mechanic’s lien in the event of non-payment. But some customers may pushback if you they are served a preliminary notice.

Enterprise resource planning (ERP) systems support several business functions such as accounting, production, customer services, procurement and credit. ERPs provide companies with a platform to help manage parts of their business. Nonetheless, businesses frequently compelled to transition their ERP systems as a result of mergers or acquisitions must discover efficient methods for data integration.

A written delegation of authority (DOA) is a crucial document in any organization, serving as a blueprint for effective management and decision-making. The DOA is meant to define and clarify roles, responsibilities and levels of authority of individuals within the organization. By clearly outlining who has the power to make specific decisions or take certain actions, it minimizes confusion, reduces the risk of duplicated efforts and empowers employees to take accountability.

Escheatment is a legal process by which unclaimed or abandoned assets, typically financial assets like bank accounts, uncashed checks, or securities, are transferred to the government. This occurs when the rightful owner of the property or funds cannot be located or identified after a specified period, known as the dormancy period. The account or property can be reclaimed if someone emerges with a legal claim, but reclamation is generally subject to a statute of limitations. Statutes not only vary by state, but by property type with costs that continue to increase.

The practice of customer pushback on the payment terms offer by their vendors is forcing the hand of creditors. If they accept the longer terms demanded by the customer, it will be extremely difficult to return the terms to the previous level. If creditors deny the longer terms, they run the risk of losing their customer.

In an ever-evolving global marketplace, outsourcing has emerged as a strategic tool that businesses of all sizes leverage to enhance efficiency, reduce costs and remain competitive. Credit departments may choose to outsource certain credit tasks on a permanent or temporary basis depending on the needs of the company.

Relationships are at the crux of what it means to be human. But not everyone is skilled at building strong, authentic relationships. Credit professionals, however, have no choice but to become the best relationship managers in the financial world. No matter how long the relationship with a customer or how much product that customer buys from your company, each one should be treated as your number one customer and feel special.