The Analysis News & Opinions


Opinion


Credit management – part of the sale, not a chore


Often, firms fail because of unexpected bad debt. Looking more closely, we see that firms frequently think of credit management and sales in isolation to one another, thereby preventing them from taking early action to address a potential problem. More firms should take a before, during, and after approach to their credit management. Given that very few firms take the time


to check their own credit score, it is not surprising that they do not investigate their customers’ credit ratings. Prior to sealing payment terms with a client, firms should take the time to review their customers’ creditworthiness, and offer sensible terms that could protect them against a future delinquent client. To implement an effective pre-sales


credit-management process, firms must open the lines of communication between their sales


teams and their credit-


management departments; establishing a mutual relationship is imperative. Many SMEs have prolonged sales delivery


periods, during which clients make payments in instalments. These are often agreed in advance, and can continue over months or years. Whilst a firm might conduct pre-sales risk assessments, many SMEs fail to carry out interim checks, exposing them to future bad debts from once seemingly creditworthy clients. This failure is often caused by a firm not


recognising or appreciating, external industry and economic changes that affect not only their business, but also those of their clients. The sooner firms start viewing credit


management as a part of the sales cycle, rather than as a chore, the sooner they can improve both sales and long-term client relationships, and dedicate more time to the selling of their services – rather than chasing payments.


Kylie Greeff Legal and compliance officer, rebuildingsociety.com


Awards winners are announced


The winners and highly commended applicants for the Credit Excellence Awards, in association with Hoist Finance, have been revealed. The official announcement was made at a


ceremony at the Guoman Tower Hotel, last month, where judges in each category handed over the trophies. Stephen Kiely, editor of CCRMagazine,


said: “Many congratulations to our winners this year, and to all the finalists. Competition has been particularly fierce, so I would also like to pass on my thanks to all the judges. It is your diligence and professionalism that make the awards possible.”


Newcomer lWinner: T-X platform from Bottomline Technologies


Risk lWinner: Alphabet (GB)


International & Export lWinner: Cedar Rose International


Compliance lWinner: Ascent Performance Group Conduct & Risk Team l Highly commended: Credit Control Department, European Metal Recycling


Credit Excellence Awards2017


in association with


Legal & Enforcement lWinner: Shakespeare Martineau – Debt Recovery Team


Commercial lWinner: Ian Williams l Highly commended: Credit Control Department, European Metal Recycling


Collections lWinner: Flint Bishop l Highly commended: MyJar


Contribution lWinner: Institute of Banking & Finance – Certificate in Consumer Debt Collection l Highly commended: Assetz Capital London


How to work smarter TELROCK


A new round-table debate will gather credit and collections professionals to consider how technology can help the industry to work smarter. The debate, run by CCRMagazine in


association with Telrock, will consider the role that technology can play in allowing collections operations to be effective and to lower costs, as well as providing the right outcomes for customers. Stephen Kiely, editor of CCRMagazine,


said: “Both convenience and customer engagement are at the very heart of


6 www.CCRMagazine.co.uk SMART INTERACTIONS


collections strategies in today’s industry. So I am delighted to be working with Telrock to bring together what promises to be an informative discussion, with the opportunity to share knowledge and ideas on this key subject area.”


November 2017


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