Tag: Best Practices

Imagine you’re a sports coach stepping into a new role at a different school. After just your first week, you quickly realize that some changes need to be made. But as you begin adjusting, the team isn’t responding the way you had hoped—and you find yourself asking, what am I doing wrong?

Companies are constantly in the market for the right supplier, whether they’re expanding services, cutting costs or keeping pace with industry innovation. But when every solution promises to be the most advanced in the room, the sheer volume of choices doesn’t simplify the decision.

The credit department’s everyday work touches on every part of a company, from the sales team to the IT department. Naturally, when those inter-departmental bonds are strong, the work in credit can be a lot easier. Cross-training is a valuable tool that helps the credit team develop an understanding of how each department runs.

It’s easy to get frustrated when a suddenly unreachable customer is not paying what they owe. But before you write off the account, skip tracing is another way credit managers can secure payment and hold debtors responsible.

If you think about it, a company’s balance sheet is like a student’s report card. Rather than disclosing a student’s academic performance, subject mastery and behavioral progress, it reveals a company’s financial position in terms of assets, liabilities and equity.

To those outside the industry, business-to-business credit management can appear cut and dry. Bound by a strict financial agreement, a company sells a product or service on credit terms to a company that agrees to make payments until the debt is cleared.

Every credit manager has seen it at least once: a customer submits a payment order with terms lined out that differ from previous agreements. These situations are tricky to navigate, with credit managers reevaluating a customer’s creditworthiness through the lens of these new terms all while wondering if the customer is allowed to break the old agreement.

Business credit, in theory, is a pretty straightforward concept. A company decides to purchase a specific product or service from another company. Rather than paying in full upfront, they apply for credit terms.