How To Be Proactive To Offer Alternatives For Marginal Customers Or Those Who Want To Increase The Credit Limit/Terms

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In earlier article, we have mentioned that one of the greatest contribution, credit function can offer is to facilitate the increase in sales/profit/liquidity is by thinking more proactively with sales personnel in the managing of marginal customers or those who want to increase the credit limits/terms. 

The credit controller can explore the following alternatives: 

• Bank Guarantee ( See sample )
• Personal Guarantee from directors, shareholders or an accepted third party. By having such personal guarantee, the firm is then able to secure payment from the guarantors and to reach their personal assets if necessary.
• Corporate guarantee (See sample)
• Irrevocable Letter Of Credits from customer’s bank.
• Any other collaterals like stocks and shares, inventories by debenture or accounts receivable by assignment.