Business Practices Archive

Since Colorado first legalized medical cannabis in 1996, more than half of the U.S. has legalized marijuana for recreational use today. But possession and distribution or sale remains illegal under federal law—meaning any money that can be traced back to state cannabis operations could expose banks to significant regulatory risk. Why it matters: Understanding the implications of liability is key for everyone in states where marijuana is legalized and for those conducting business with companies in these states. For credit professionals, there are many questions regarding how or if you sh…

De-escalating customer conflicts is a routine part of the job for trade credit managers. Why it matters: Understanding and effectively managing customer conflict is vital because it directly influences a business’s financial well-being, reputation, and overall trajectory. To address this challenge, we have compiled a list of proven strategies that credit professionals employ to effectively manage and de-escalate even the most difficult customer scenarios. #1 Say less, listen more By listening to your customer, you promote expression and understanding, speeding up the journey to …

Outsourcing is a common business practice among companies that use external providers to complete business processes and tasks. Outsourcing became a recognized business strategy in the 1990s as companies shifted the responsibility of some in-house processes to outside firms. Some companies use a shared services model, staffed by their employees, where like business functions are consolidated into a single unit that operates as its own entity to deliver services to the entire organization.

Job satisfaction is the key driver of positive results. If an employee likes their job and all it has to offer them, they will stay loyal to the company. But job satisfaction can be broken down into many layers—and what one employee puts at the top of their list could be completely opposite of their colleague. Why it matters: This remains true for B2B credit professionals. Several factors can go into what promotes job satisfaction, both personally and professionally. By the numbers: A recent NACM eNews poll revealed 30% of credit professionals say work-life balance is the highest comp…

Spearheading daily challenges and taking on the unexpected is expected. But let’s face it—no leader can do everything by themselves. Why it matters: Delegation is one of the most essential skills of management. It not only takes some of the workload off the shoulders of a leader, but it gives your team the opportunity to grow and learn in the process. A delegation of authority is a document that identifies the most effective model of distributing responsibilities and power to those involved in certain decisions. The best example is how those at the entry level handle more routine resp…

During this Mental Health Awareness Month, we are exploring how credit managers can feel happy and fulfilled in their careers. Happiness is not merely a byproduct of success but a powerful catalyst for it. Credit managers must cultivate a positive mindset to find the true purpose of their role. Why it matters: The key is to leverage practical strategies to infuse joy and fulfillment into every aspect of being a credit manager. By the numbers: According to a Zipdo report, approximately 53% of Americans are currently unhappy at work while 85% of people are dissatisfied with their jobs w…

A credit report is a statement that includes all credit activity, both current and past, including payment history, credit limits and debt. Credit reports help credit managers uncover a customer’s risk level and likelihood of getting paid on time.

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