Tag: Credit Management

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.

At first glance, credit management may appear to solely require hard skills such as financial data analysis, risk assessment and cash flow forecasting. But as a profession based largely upon trust, credit managers must not forget to develop their soft skills.

The role of credit professionals in modern organizations is multifaceted and challenging, with numerous responsibilities and pressures. The evolution of technology, from computers to artificial intelligence, has transformed the credit management field, improved productivity and eliminated repetitive tasks. However, for some credit departments, technology has become a burden.

Insurance is a form of protection and risk mitigation tool to protect against contingencies or unexpected loss. It serves its purpose in several instances—whether it’s your car, health or even your pet. Most people want to have a cushion to be prepared for unexpected circumstances, so, they pay for the protection. But how exactly does insurance function in the B2B trade credit industry?