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Credit Management Articles


Are Unresolved A/R Disputes Taking a Toll on Your Company's Bottom Line?

In addition to the obvious loss of income when accounts go uncollected, find out how the hidden costs of unresolved receivable disputes could be impacting your company's profits.

Basic Outline for Developing a Credit Policy

If your goal is to effectively manage your credit process and make it an integral part of your organization's success, developing a well-defined credit policy should be at the top of your list.

Basics of Writing a Good Debt Collection RFP

Selecting the right outside collection agency often starts with a well-written request for proposal. Here's a detailed outline of how write one.

Cash Flow and DSO

Cash flow – when it slows down or stops, so does the health of your business. This article provides a clear and practical application that will help credit professionals avoid a major "cash trap" and contribute to the overall health of their company.

Credit and Collection Policy Basics

If you don't have a credit and collections policy or if you haven’t reviewed your policy in awhile – here's some practical help for developing a policy that will ensure consistency and breathe new life into your credit-to-cash process.

Credit Extensions are Loans

When selling on account, why do many credit grantors shy away from one of the most effective tools for limiting credit risk? Find out how getting back to a credit basic – the credit application – can help you improve the collectibility of your accounts.

Credit Group Spotlight: GAIN

GAIN is a member-driven association that utilizes an Online Credit Interchange database. Credit professionals in giftware, greeting card, silk floral and related industries comprise the more than 200 members from across the U.S. and Canada who share credit information and experience.

NCCA is a unique national organization of credit professionals representing some of the top chemical companies in the world. Established in 1938, the non-profit Association was founded to facilitate the exchange of commercial credit information among leaders of the chemical industry.

D/P, D/A, and Their Use in International Sales Transactions

What sales transaction offers a risk level lower than an Open Account (O/A), but greater than a Letter of Credit (L/C)? There are actually two. Read about them here.

DuPont Analysis

The DuPont Analysis provides a starting point for determining a company's strengths and weaknesses. Here's a breakdown of the three components that comprise this Return on Equity ratio and what they reveal about the financial position of an organization.

Escheatment

Businesses are paying hundreds of thousands of dollars in penalties and interest for failure to comply with unclaimed property laws. Find out how to avoid running afoul of these laws.

Final and Binding Arbitration

Looking for a way to reduce recovery time and litigation costs related to your international claims? Find out how Final and Binding Arbitration can help.

For AR Success, Participate in Your Industry Credit Groups

In a business climate characterized by volatility and growing risk, AR and credit pros need- more than ever-to thoroughly assess the creditworthiness of current and potential customers.

Gift Industry Independents: Strength in Numbers

Did you know that independent retailers make up nearly 75% of the gift industry market? It has long been thought that with the rise of retail giants like Amazon, Walmart and Target, that the days of the independent retailer were numbered. 

The Importance of Country Registrars

Most business people don't recognize the moment that an account they are selling to goes bad.  Frankly, most don't know what signs to look for, even when the clues are right there.

Measure and Manage Collection Efficiency Using DSO

Here's plenty of good information and resources to help you use Days Sales Outstanding to analyze the effectiveness of your credit and collection process.

Online Credit Applications: Doing It Right

There are a number of advantages to on-line credit applications. Find out what they are – and how to convert your paper document into an e-document that is legally admissible and enforceable.

Personal Guarantees

Murray S. Lubitz, principal in the Murray Lubitz Law Firm located in White Plains, New York discusses this important collection tool, including the key elements of a solid personal guarantee.

The Proforma Invoice and Its Value in Export Sales

There are a number of advantages in using a proforma invoice to create a sale. Learn what they are – and the specific information that comprises a well-drafted pro forma invoice.

Receivables Based Financing

Find out how you can use your A/R portfolio to get the money you need to keep your business going and growing – without selling them to a factor.

Risk-Based Collections

This article, provided by SunGard AvantGard, discusses how risk-based collections prioritization can help companies prioritize collection activities to reduce outstanding A/R while maximizing revenue opportunities with lower risk accounts.


Sales War, the Conflict Between Sales and Credit

Ninety-five percent or more of all Commercial or B2B sales involve credit terms, payment due at a later date. The resulting A/R (short term money due from customers) is one of the largest assets of a business. 

Selling on Credit Without Financial Information

When an attractive sales opportunity presents itself – but the financial information you ordinarily like to see does not, what are your options?

Understanding the Balance Sheet

Finally, some practical help in sorting through the information found in financials. Here's an easy to understand, usable explanation of the Balance Sheet, what to look at and what it means.

Understanding the Cash Flow Statement

The final piece of the puzzle! No, we're not talking about the conclusion of the TV series, LOST. This is better. This final episode reveals how to use a company's Cash Flow Statement to find important information regarding its financial health. When used together with our previous articles on analyzing financials, you'll be able to penetrate the smoke screen and make those tough credit decisions you face every day.

Understanding the Income Statement

What does the Income Statement reveal about a company's creditworthiness? More practical information that will help you make better informed credit decisions.