Tag: Finance

When it comes to getting a thorough view of customers’ financial health, there are few resources as enlightening as their financial statements. While it may be intimidating at first to parse through the dense datasets, learning how to interpret and analyze financial statements can help credit managers make strong, swift credit decisions.

As economic uncertainty rises and markets lose stability, many companies anticipating cash flow issues will be looking for areas of the budget to slash to soften the blow. Discretionary funds, which can cover a variety of professional endeavors, from education to customer visits to professional development, are often the first on the chopping block when the economic outlook looks bleak.

A professional certification from NACM can aid credit professionals as they familiarize themselves with this dynamic industry and hone the skills needed to thrive and advance in their field. By earning his Credit Business Associate (CBA), Yaseen Owen, CBA, credit analyst at J.R. Simplot Company (College Station, TX), has begun immersing himself in the credit world after transitioning over from a different part of the field.  

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.

Private equity (PE) refers to investments made into private companies by partnerships, which buy, manage and sell these companies. These partnerships, known as private equity firms, run these investment funds for institutional and accredited investors.

In an era where digital transactions reign supreme, customer payment portals have emerged as a convenient and efficient way for businesses to manage receivables and streamline payment processes. However, while the benefits of customer payment portals are undeniable, their implementation and maintenance come with their own set of costs and considerations for credit departments.

Learning a new language requires patience and practice to fully grasp its nuances. It is a form of communication with words, abbreviations and symbols to relay meaning. Even simpler abbreviations such as EOD (end of day) or WFH (work from home), acronyms simplify communication and present a sense of belonging when using the terms correctly—especially in your workplace. Credit professionals across all industries have their own abbreviations or terms to use relative to their department and customers, but some terms are universal—and every credit professional should have an idea of what they m…