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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
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