Written by: The Arun Business Partnership
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Businesses need to understand that there is far more to Credit Management than meets the eye.
With many businesses requesting additional support from their banks, businesses are being asked to cough up hefty collateral for loans, despite some of the loan facilities being guaranteed by the government.
Unless a company’s internal procedures for their cash collections are up to speed with essential procedures in place, the chances of an extension to their overdraft facility or a loan request being accepted will be reduced significantly.
All businesses rely on money flowing through the company at a certain rate to meet business commitments. If this flow is sluggish – you have a cashflow problem. Never take it for granted that your long term clients are going to pay you on time or that your relationship with them is sound. Regularly monitor all your clients and always give them a limit on how much credit you are happy to give and never let them go over that limit.
Amril can support your credit function as we are a full cycle Credit Management company who firmly believe:
“It’s not Credit Management, It’s Relationship Management”
Amril’s Managing Director, Graham Sands has written a chapter in the international book ‘The Business Guide to Credit Management’ where he discusses essential credit management issues that can increase cashflow and reduce Debtor Sales Outstanding (DSO).
If you would like a copy of this book, please visit www.amril.co.uk where you will receive a third off the recommended retail price of £29.95. Please quote: Amril01businessmatters
