Overview
Smaller businesses looking to grow and expand their market share may look to extend credit to their customers for the purchase of products or services. Without possessing the skill-sets necessary to extend credit properly however, the prospect of credit extension can become a very dangerous and costly proposition. Making a sale to a prospective customer or client on credit terms can lead to a financial loss without first:
1. Creating a credit policy to standardize what your individual company will accept as its payment terms. These include length of standard payment term such as Net 10, Net 15 or Net 30, as well as applicable interest rates and late charges.
2. Investigating the credit-worthiness of a potential customer by thoroughly reviewing their credit history with present and past creditors as well as public and private databases.
3. Determining the customer’s ability to repay the obligation by reviewing their financial statements.
4. Possessing the knowledge and skills necessary to collect the account once credit has been extended in the event of non-payment.
5. Knowing when to cease extending credit and limit sales to COD.
6. Knowing when and if a customer relationship should be maintained, salvaged, or just simply terminated.
To add to and compound these difficulties, a small to medium-sized business typically cannot afford or justify the expense of hiring a full-time credit professional to handle these functions thereby leaving the choice to never extending credit, or worse yet, delegating or splitting these areas among one or more individuals whose positions within the company may partially relate to credit and collections, such as an accounting department or sales department. Delegation to an Accounting Department may seem like a viable alternative but time constraints could impose a hardship on their primary job functions and quite frankly most accountants do not have any practical credit management experience. Alternatively, permitting a sales department to determine a credit relationship could have disastrous consequences as their eagerness to make a sale and a lack of logical objectivity could jeopardize timely payment of the obligation will be received.
Credit and Collections Management Services
If you have ever thought of increasing your cash-flow and market share by offering credit to your customers, or if you have already extended credit to one or more customers and are experiencing unacceptable levels of non-payment or unauthorized deductions CreditPro Financial Services, LLC, is your choice to provide expert advice, analytics and experience to streamline the credit and collections process. Our credit and financial experts possess many years of experience in the areas of commercial credit extension, collections and accounts receivable management and we provide these services to a variety of industries with specialties in construction, contracting and manufacturing.
When you become a client of CreditPro Financial Services, LLC, you can expect:
• Individualized programs specifically tailored to your business needs.
• Reliable and accurate information to make an informed credit decision with far less risk.
• Expert advice from credit professionals possessing many years of hands-on credit and collections management experience.
• Substantial cost savings versus hiring a full-time credit manager or credit department.
Our philosophy is one that promotes sales growth through the use of established and proven credit granting techniques and collection methods that do not alienate your customer base. We know and believe that you have worked diligently to acquire your clients and customers and we make every effort to continue to foster positive relationships on your behalf during each and every contact that is made with your potential, new and existing business.