Tag: Credit Management

Arbitration is an alternative dispute-resolution process that uses a neutral third party to make a binding decision. Disputes are inevitable in any business or partnership, but most do not expect future litigation against the other party. However, in the construction industry, the average value of disputes in North America increased by 42% in 2023, according to a report from Arcadis. And 70% of construction projects end up with claims.

Credit scores reflect how likely or unlikely a person is to pay any loaned amount of money back. Three digits, typically between the range of 300 to 850, can decide your fate in a multitude of purchases from vehicles to mortgages or student loans, for example. These scores are used by companies to determine the interest rates and credit limits you should receive.

Signing a Non-Disclosure Agreement (NDA) has become standard practice for credit managers seeking access to sensitive customer financial information. By committing to confidentiality, credit managers reassure customers that their data will be handled with the utmost care and discretion. This proactive step not only fosters trust but also makes customers feel more comfortable and confident in sharing vital financial details knowing their information will be protected.

In B2B credit management, where numbers often speak louder than words, it’s easy to overlook the human element behind the figures. However, credit managers are not calculators; they are visionaries, strategists and above all, individuals with voices longing to be heard. Whether they’re negotiating credit terms with customers or collaborating with internal teams, credit managers want to matter. They want a seat at the table, not just as silent observers, but as valued contributors whose opinions shape decisions and outcomes.

Competition creates significant consumer benefits, including increased innovation, efficiency, variety, quality and lower prices. Antitrust laws, which prevent companies from unfairly dominating markets or stifling competition, ensure that customers have options. Why it matters: Understanding and complying with antitrust laws is essential in the credit industry to preserve competition, prevent violations that could lead to severe penalties including fines and imprisonment, and maintain a company’s reputation and future business opportunities.

Credit managers are the link between customers and many other business functions such as marketing, sales, logistics, customer service, accounts payable and treasury. The responsibilities of a credit manager often overlap with the traditional roles in other departments. Why it matters: Understanding the interconnectedness of the credit department with other business functions is critical for effective collaboration and ensuring a smooth flow of operations.

In response to global conflicts, the U.S. and its allies have increased economic sanctions and enforcement measures against various countries. Businesses can minimize their exposure to these changes by regularly monitoring sanction updates, understanding applicable laws, integrating sanctions compliance into regulatory processes and strengthening Know-Your-Customer (KYC) policies. Why it matters: The noticeable surge in, attention to and enforcement of international trade requirements and regulations underscore the need for credit managers to stay vigilant and be aware of potential …

Adhering to a corporate credit policy is essential to managing and assessing credit risk, setting payment terms and ensuring a healthy cash flow. Having a policy in place to follow establishes the guidelines to maintain financial stability and build trust with customers while minimizing the potential for bad debt. Although a credit policy is one of the most important documents in credit management, many credit departments do not have a credit policy set in place. Establishing a sound credit policy empowers the credit department to not only be an asset to the company but also play a key role…