Tag: Best Practices

The term “ghosting” is commonly used in the dating world to describe a person who stops responding to calls or texts suddenly and without explanation. But credit professionals also can be victims of ghosting from customers.

Many credit professionals spend a lot of time trying to resolve customer disputes, and disputes tend to become more common during times of economic volatility as a way for customers to stretch payment terms. Disputes end in the customer’s favor more than 75% of the time for one in every four credit professionals, according to an eNews poll. One in every five credit professionals say more than 5% of their past dues are tied up in disputes. The disputes factor in NACM’s Credit Managers’ Index fell 2.5 points to 47.3 in September, its lowest level since April of 2009.

Contracts are the foundation of construction projects. They provide written documentation of what the scope of the work will be, terms, budget, obligations and more. It is imperative to thoroughly read the terms you will be agreeing to before signing any contract at all.

In the wake of a tumultuous economy and consistent interest rate hikes, more companies are under significant financial distress, struggling to pay debts and survive. This has given rise to “zombie companies”—businesses that are able to continue operating but are essentially insolvent and no longer profitable. Zombie companies serve as a chilling reminder of the complexities and challenges lurking within the economic landscape.

Today’s workplace has up to four different generations all working together. Take a look around your office. You’ll most likely see a mix of Baby Boomers (1946-1964), Gen X’ers (1965-1980), Millennials (1981-1996) and Gen Z’ers (1997-2012). The dynamics among different generations often give rise to perceptions, misconceptions and even the occasional workplace stigma. But if leveraged strategically, each generation can learn from each other and add value to the credit team.

Fraudulent credit applications are on the rise—a concerning trend in the B2B credit world. A recent eNews poll revealed that 44% of credit professionals have seen an increase in fraud attempts from new customers filling out credit applications.

Preliminary notices should not be overlooked in the complex world of construction and project management because they serve as the crucial foundation upon which the entire payment process hinges. A preliminary notice serves as a notification to the owner or general contractor of a construction project to notify them that a contractor, sub-contractor, materials provider or other party is reserving their right to file a mechanic’s lien in the event of non-payment. But some customers may pushback if you they are served a preliminary notice.

Enterprise resource planning (ERP) systems support several business functions such as accounting, production, customer services, procurement and credit. ERPs provide companies with a platform to help manage parts of their business. Nonetheless, businesses frequently compelled to transition their ERP systems as a result of mergers or acquisitions must discover efficient methods for data integration.

Relationships are at the crux of what it means to be human. But not everyone is skilled at building strong, authentic relationships. Credit professionals, however, have no choice but to become the best relationship managers in the financial world. No matter how long the relationship with a customer or how much product that customer buys from your company, each one should be treated as your number one customer and feel special.