eNews Archive

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.

NACM’s February Credit Managers’ Index (CMI) remains stubbornly close to contraction territory despite improving 1.3 points to 52.4. “We did not fall into formal recession in 2023 and we might not in 2024, but for many credit managers, it’s as if a recession is well underway,” said NACM Economist Amy Crews Cutts, Ph.D., CBE.

The role of credit professionals in modern organizations is multifaceted and challenging, with numerous responsibilities and pressures. The evolution of technology, from computers to artificial intelligence, has transformed the credit management field, improved productivity and eliminated repetitive tasks. However, for some credit departments, technology has become a burden.

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?

Artificial intelligence (AI), a machine’s ability to perform the cognitive functions we associate with the human mind, is being used to facilitate processes and improve efficiency in business. As different forms of AI gain popularity in the finance sector, credit professionals must become experts on how AI can support their role and simplify workflow. Why it matters: Even if your company isn’t utilizing AI, it’s critical to establish credit policies to safeguard against risk.

Leadership serves as a catalyst for change, knowledge and growth. Leaders are individuals with a wide range of expertise providing guidance to those around them—and in the workplace, it’s crucial to earn the respect and trust of your employees. But this doesn’t happen overnight. Mutual trust and respect develop over time. Several layers exist to get to the core of how your team functions both together and individually, which is why psychology plays a significant role in leading effectively.