Tag: Best Practices

When most people think of a business filing bankruptcy, what they’re often picturing is a Chapter 7. This chapter of the U.S. Bankruptcy Code provides for liquidation, in other words, the sale or monetization of the debtor’s property and the distribution of any available net proceeds to creditors.

Credit management is shaped by market cycles, economic trends and digital transformation. In an industry like this—you can’t afford to stand still. Staying ahead of the curve requires continuous learning, and many credit professionals build their expertise by earning certifications through NACM and FCIB’s six-level Professional Certification Program. 

Not every customer has a perfect credit score or strong balance sheet, but that doesn’t mean they aren’t worth doing business with. Marginal customers often stand in a gray area: high potential, but higher risk. The challenge is to identify whether open, unsecured credit can be extended to a marginal customer or whether other tools must be used to create guardrails around the transaction.

More than just a learning experience, NACM and FCIB’s Professional Certification Program transforms participants, equipping them with the confidence and knowledge to make greater contributions to the credit profession.

Imagine you’re a senior credit analyst at a mid-sized company. On Monday, you’re reviewing aging reports and finalizing credit limits for a new customer. By Wednesday, news drops that your company is being acquired by a larger competitor.

Working in credit brings new challenges each day, whether you are deciding on the ideal credit line for a risky customer or analyzing complicated financial statements. With the role of credit managers expanding each day with new responsibilities, outsourcing tasks within the credit department can be a key part of the risk mitigation strategy.

No other department’s work impacts the day-to-day of the credit team quite like the sales department. As the credit team works to mitigate risk by carefully considering the possible ramifications of each transaction, they rely on the sales team to bring in customers. The work of each department is inextricably tied to the other, so it is only natural that sales would be credit’s closest ally when advocating for system upgrades.

As technology continuously reshapes the business-to-business credit field, the risk landscape transforms as fraudsters manipulate newer technology to attack businesses. With artificial intelligence becoming more advanced, credit managers are raising their defenses against synthetic fraud as it takes on new forms each day.

Extending credit is, in many ways, a calculated risk. You’re relying on your customer’s ability and willingness to pay on time, if at all. But smart credit professionals don’t move forward without clarity. By analyzing a customer’s financials, they get a clearer view of the hand they’re being dealt to make more informed credit decisions. But what happens if a customer refuses to share financials?