Tag: Credit Management

Timeliness is essential in the credit management profession, as delayed actions can result in missed sales opportunities, financial losses and strained customer relationships.

Job descriptions are brief written explanations that outline the responsibilities and requirements of a role. Crafting the right job description will help attract the most qualified candidate—and with millions of job listings on different websites, a well-crafted job description will help you stand out.

More credit managers are improving cash flow forecasting, a technique for estimating a business’s future cash movements. However, this wouldn’t be possible without collections forecasting.

Audits are designed to ensure all financial reports are knowledge-based, factual and follow regulatory guidelines. The auditing process is important as it presents credibility to a set of financial statements—giving both shareholders and the company confidence in the fairness of all accounts. It can also help to improve a company’s internal controls and systems as a resource to better processes and find efficiencies in them.

Credit is the lifeblood of every business. Its role in managing cash, identifying risks and evaluating potential for loss are only a snippet of the entire picture. But there’s another key function that cannot be overlooked: accounting. As credit is the lifeblood of a business, accounting is the language of a business.

The pressure to make quick decisions can often compromise the integrity of due diligence processes. When faced with tight deadlines and mounting expectations, credit managers may find themselves forced to cut corners and make rushed decisions.

In an industry where decisions can have significant financial implications, mere competence is often not enough to inspire confidence. Credit managers must strive to cultivate a unique brand of “credit”-ability—a combination of expertise, integrity and professionalism that sets them apart as trusted partners in risk management.

Credit applications serve as the initial safeguard against risk. Risk reduction begins immediately upon receipt of a customer’s credit application, either digitally or on paper. But the role of credit applications in the customer onboarding process has evolved over time. Previously, credit applications served to establish a binding contract, but now, alternative methods may be used for this purpose.

The short answer is yes, the credit community can still find value in financial statements. But we may need to reconsider the way in which we think about financials.