In Focus Commercial Credit


It needs to work both ways


Being paid on time does not just rely on your customer – it needs to start within your own business


Sarah Radley Managing director, Inksmoor Finance Group sradley@inksmoor.co.uk


I am often asked “what is the biggest challenge your credit-management clients face?” More often than not, the answer to this question is: having effective query and dispute resolution. We all know that cash is king, and the


importance of ensuring debtors adhere to payments terms. However, what happens when the debtor upholds their end of the commercial relationship, but the business supplying the goods or services fails to do the same? Business owners are primarily focused on


sales and, in turn, profit, but what about the hidden costs that can lie within their own debtor book? Business of all sizes suffer delays to cash


collections because of a myriad of queries; these can be easily resolved, or more time consuming and involved to deal with. Either way, every day that is delayed in


solving those queries, is costing the business money. In most cases, business owners may only


realise their query resolution is inadequate when cashflow is adversely affected, or when a third party identifies the issues.


A double-edged sword Ineffective query resolution is a double-edged sword; how this is dealt with impacts on the whole debtor experience, and can affect future buying preferences.


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In most cases, business owners may only realise their query resolution is inadequate when cashflow is adversely affected, or when a third party identifies the issues


www.CCRMagazine.com Why would a client want to deal with a


company that cannot, or will not, rectify its mistakes? So what is the answer? Be proactive. And


this needs to start at the point of sale. Are your terms and conditions supportive


of your stance, when it comes to queries? If you only accept queries within seven days, then ensure they adhere to this: always be firm, but fair.


April 2018


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