Business Practices Archive

Timeliness is essential in the credit management profession, as delayed actions can result in missed sales opportunities, financial losses and strained customer relationships.

Audits are designed to ensure all financial reports are knowledge-based, factual and follow regulatory guidelines. The auditing process is important as it presents credibility to a set of financial statements—giving both shareholders and the company confidence in the fairness of all accounts. It can also help to improve a company’s internal controls and systems as a resource to better processes and find efficiencies in them.

Credit applications serve as the initial safeguard against risk. Risk reduction begins immediately upon receipt of a customer’s credit application, either digitally or on paper. But the role of credit applications in the customer onboarding process has evolved over time. Previously, credit applications served to establish a binding contract, but now, alternative methods may be used for this purpose.

The short answer is yes, the credit community can still find value in financial statements. But we may need to reconsider the way in which we think about financials.

At first glance, credit management may appear to solely require hard skills such as financial data analysis, risk assessment and cash flow forecasting. But as a profession based largely upon trust, credit managers must not forget to develop their soft skills.

Insurance is a form of protection and risk mitigation tool to protect against contingencies or unexpected loss. It serves its purpose in several instances—whether it’s your car, health or even your pet. Most people want to have a cushion to be prepared for unexpected circumstances, so, they pay for the protection. But how exactly does insurance function in the B2B trade credit industry?

Four years after the start of the pandemic, many credit managers still work from home. But a growing number are back in the office five days a week. Why it matters: Understanding these labor market shifts and trends is key for credit professionals as it directly impacts their work environment, job security and workload management. Credit managers must remain aware of these pressures as workforce trends continue to change in 2024.

Credit scores reflect how likely or unlikely a person is to pay any loaned amount of money back. Three digits, typically between the range of 300 to 850, can decide your fate in a multitude of purchases from vehicles to mortgages or student loans, for example. These scores are used by companies to determine the interest rates and credit limits you should receive.