Credit Management Reviews
With an emphasis on increasing sales, credit management is sometimes treated as the poor cousin in the marketing process. This is a dangerous philosophy, as the costs of debt recovery and bad debts may eliminate any profit margins inherent in the initial sale.
It is important, therefore that systems are in place which facilitate the prompt collection of outstanding debts. A Credit management review may highlight areas of improvement in the initial process of granting credit, right through to the process of debt collection. The benefits will be seen in:
• Improved cash flows
• fewer bad debts, resulting in
• reduced interest costs and
• higher profits
With our significant experience, we at Melsom Robson are in a good position to evaluate a business’ credit management policies and procedures, thus helping to reduce losses from bad and doubtful debts.
What we can do for you
Depending on your own needs, we can conduct a series of reviews and recommendations that will improve your cash flows, reduce your cost of credit and losses due to bad debt, thus improving profitability of your business.
Among the services provided, we can:-
• Review your credit policy or, if you do not have one, assist you to create a credit policy consistent with your business objectives;
• Review your credit application forms and processes;
• Review your collection procedures and recommend, if appropriate, methods aimed at improving your cash flows;
• Review your invoices and follow up letters;
• Review and recommend the application of retention of title processes;
• Review your information systems with a view to improving the quality of management information;
• Provide an overall health check of your Credit Management system;
• Provide training to your staff