Tag: Credit Management

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.

The construction industry presents unique challenges for credit professionals due to its complicated nature. For example, credit professionals must assess the risk associated with multiple parties involved in a single project. Cash flows in construction often depend on project milestones and payments, making it challenging to predict when and how payments will be received.

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.

Just as a football team relies on every player’s commitment and passion to achieve victory, an organization thrives when its employees are fully engaged. Re-engaging employees is like reigniting the spark in a team that has momentarily lost its momentum. It’s about tapping into their potential, revitalizing their spirit and reminding them of their vital roles in the collective pursuit of success.

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.

A written delegation of authority (DOA) is a crucial document in any organization, serving as a blueprint for effective management and decision-making. The DOA is meant to define and clarify roles, responsibilities and levels of authority of individuals within the organization. By clearly outlining who has the power to make specific decisions or take certain actions, it minimizes confusion, reduces the risk of duplicated efforts and empowers employees to take accountability.