Tag: Credit

The last few decades have seen large waves of women entering the credit profession. Women are entering into male-dominated offices and paving the way for other women to not only excel in credit positions but climb the ladder into leadership roles previously only allotted to men.   

Regardless of the industry you work in, or whether you’ve been in the credit field for decades or only a matter of months, it is vital that you know and understand the federal laws that regulate a credit managers’ activity. Credit managers across industries are beholden to the regulations set by the Equal Opportunity Credit Act (ECOA), which prohibits discrimination in the extension of credit. ECOA forbids discrimination on the basis of sex, race, religion, color, creed, national origin, age or marital status in the extension of credit.  

Whether you are conducting an initial credit investigation on a potential customer or reviewing the credit line for a long-held account, commercial credit reports play an important part in the decision to extend credit to a customer. Despite their usefulness, many companies are hesitant to share their accounts receivable data to commercial credit reporting companies. 

For most credit managers, a credit application is a vital step in the credit approval process. It’s a document that neatly outlines all the pertinent information that a credit manager needs to know about their customer, from its corporate legal name to the number of years they’ve been in business. No step epitomizes the oft-repeated mantra of credit management, “Know Your Customer,” quite like the credit application.

NACM’s Credit Managers’ Index (CMI) improved 1.9 points to 54.9 in February. This comes after two months of declines.

The credit and sales departments share a complex relationship that varies by company. While their level of interaction differs across organizations, their functions are fundamentally intertwined—credit departments vigilantly oversee accounts acquired by sales teams, evaluating both potential risks and opportunities for growth.

As credit managers, your day-to-day work focuses on maintaining the delicate balance between extending credit to customers and protecting your company from potential risk. This determination hinges on your initial credit investigation, your first deep dive into a customer’s finances, payment habits and professional relationships. Financial records play a major role during the determination of creditworthiness, offering a well-rounded and comprehensive fact-based view into your customer’s finances.

When it comes to mitigating risk and protecting a business from potential losses, the success of any credit department hinges on the credit investigation. That first look into a customer to assess creditworthiness, and determine the appropriate terms of sale, is a crucial stage in your relationship with that customer.

Bob Dylan famously sang, “You don’t need a weatherman to know which way the wind blows.” The market started the new year on a roller coaster, with the S&P 500 hitting an all-time high, then selling off on news of a fresh AI model from China. Many reacted by buying the dip in AI stocks, and the S&P 500 closed the month with a 2.7% gain. Mid-cap stocks outperformed their large-cap peers while small-cap continued to lag.