Tag: Best Practices

Cash application is a vital component of the accounts receivable (AR) process. It involves matching incoming payments to the correct customer accounts and invoices, and then posting the payments to the appropriate accounts.

Credit limits are put in place to be the maximum amount of money that can be borrowed or used through a financial product or service. They can be based on factors such as credit scores, credit history and income. For example, consumer credit cards are a form of an unsecured line of credit and the credit limit is the amount that can be charged on the card.

The B2B automation market, once dominated by a few key players, is now saturated by hundreds of service providers. This makes finding the right automation vendor much more challenging.

Cybersecurity has emerged as a critical component of credit management, earning its place as the unofficial sixth ‘C’ in the traditional five Cs of credit (Character, Capacity, Capital, Conditions and Collateral). As businesses increasingly rely on digital platforms for transactions, data storage and communication, the risk of cyber threats has escalated, making it essential for credit professionals to prioritize cybersecurity in their risk assessments.

🎙️On today’s episode of Extra Credit, climate change is increasing the frequency and intensity of severe weather events and natural disasters around the world. 

The credit department aims to maximize safe sales, requiring tough decisions. Denying credit is a last resort but sometimes essential.

Month-end close, also known as financial close, is a protocol to maintain and finalize your company’s financial records for the month. Documentation, team reviews and reconciliation of all financial transactions in that time period are processed, which can be both tedious and time-consuming because of its importance.

While startups often present exciting opportunities for growth and innovation, they also come with significant uncertainties. Unlike established businesses, startups typically lack a proven track record, stable cash flow and robust financial history, making the assessment of their creditworthiness a complicated challenge.

Great leaders can create impactful change, build sustainable relationships and leave a legacy of culture. But what happens when they leave?