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
