What Are The Factors To Consider When Deciding On Legal Action?

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It always is easier to just to pull the firm’s delinquent customers to court when they cannot pay up. However, before doing so, it is strongly suggested that the firm should ponder upon the below factors before pursuing such actions otherwise this might ultimately lead to losing both [...]

November 29, 2009  Tags: Credit management  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments

Significant Warning Signs That Your Customers Cannot Pay

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As a credit controller, one needs to be extra vigilant to detect any signs or symptoms that the customers are slowly turning into delinquent debtors which might need to bad debts. 
Append below are some important warning signs or symptoms that we should watch out: 

Customer starts paying more slowly

Payment [...]

November 29, 2009  Tags: Credit management, warning signs  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments

Name Some Delaying Tactics That Delinquent Debtors Use

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It is important for a credit controller to understand what are the delaying tricks or tactics that the customers can use not to pay the account. 
Append below are some of the delaying tactics or tricks commonly deploy by delinquent debtors:

Cheques submitted but short of one other signatory
Discrepancy in [...]

November 29, 2009  Tags: Credit management, delaying tactics  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments

What Are The Features Of A Good Final Warning Letter. Draft A Sample Final Warning Letter.

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Features of a Good, Effective Final Warning letter
 Should not contain empty threats, if you do not mean it, do not say it,

Despite the purpose, it should be polite but firm. Do not be abusive

It should state exactly what will happen if payment is not made by the stated date. There [...]

November 29, 2009  Tags: Credit management, final reminder letter  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments

What are the features of a Good Standard Letter or Reminder. Draft A Sample Of This First Standard Letter Or Reminder.

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Many of us tend to have the mistake of getting their  first letter of reminder to the deliquent debtors very stereotype re: do not have named person, paper quality is extremely bad, standard signature chop,etc
We must always remember that any reminder letter must serve a purpose hence we need [...]

November 29, 2009  Tags: Credit management, Reminder letter  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments

What Are The Roles/Function Of Credit Management Department

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It might be a surprise that some companies do not emphasis or support the roles or function of their credit management/control department. This is especially true for sales personnel when they think that credit department is an obstacle towards achieving their sales target. To some they still do not [...]

November 29, 2009  Tags: Credit management, role  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments

Using Trade Reference As Part Of Credit Vetting Procedures

In the credit application form we can put a request to the customer for the names of his trade references.
Why is this so? The taking of references has becomingly more common. Seeking trade references can greatly help the credit manager/controller in the credit vetting  of his customer. So we should make it as easy or [...]

November 28, 2009  Tags: Credit control, Credit management, trade reference  Posted in: CREDIT MANAGEMENT/CONTROL  No Comments