In today’s uneasy economy with conflicting economic messages, nearly every trade creditor should have low bad debt and a strong cash flow position. However we all know that is not the case so diving deeper into the metrics of the receivables management process tells a more accurate story of a company’s true cash flow efficiency and position.
Critical cash flow forecasting is what CFOs need but don’t receive from their credit managers. This component is important because it measures customer payment performance and the impact of it on cash flow forecasts. Rather than simply measuring bad debt as a percentage of sales, at The Credit Department (TCD), we assess the effectiveness of a credit risk process by examining the performance of the customer payments. Did the customer pay the way we predicted they would?
– Featured in the September/October issue of Business Credit magazine
Effectiveness and efficiency are key to your receivables management process. If you aren’t measuring both areas, you may not be getting an accurate picture of your trade receivables management.
Since 1993, The Credit Department has provided sophisticated portfolio risk analysis with a level of expertise and technology that originated in F-100 credit departments. We have taken that knowledge and elevated it to real-time credit monitoring and risk analysis that equals real dollars saved and legal proceedings avoided.
Do you want to…
Reduce credit risk?
Manage portfolio company debt?
Incorporate improved metrics?