Tag: Credit

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.

One of the biggest challenges in business credit is ensuring customers adhere to contractual terms and agreements. Often, this requires negotiating terms and going the extra mile to protect your rights and ensure obligations are met.

Over the past decade, more U.S. companies have adopted a Shared Services Center (SSC), a centralized unit managing specific business processes for multiple entities within an organization. In B2B credit, some companies have an SSC to centralize credit-related functions such as credit analysis, billing, collections and dispute resolution. 

Since 2020, business-to-government (B2G) e-invoicing has been mandatory for French businesses. Starting in September 2026, France will transition to a globally adopted mixed continuous transaction controls (CTC) model, further expanding its invoicing framework.

The debate over whether to combine or separate credit and collections functions is a hot topic in the B2B credit industry. Companies on both sides of the argument offer compelling reasons for their approach.

Credit holds temporarily suspend or reduce credit limits for customers who miss payments or exceed their credit limit. Why it matters: Although often used as a last resort, implementing credit holds is necessary as it aids in mitigating risk, ensuring financial stability and maintaining positive customer relationships.