We all start the new year with resolutions in different areas of our lives. The credit and collections department cannot be ignored when setting your objectives and resolutions for this year.
I have put together a list of recommended resolutions:
Establish recovery goals and objectives
To establish recovery goals and objectives for this year, it is advisable to review last year’s results and analyse your past due receivables. In analyzing your past due receivables, I strongly suggest you identify those factors that generated the aging of these accounts.
Establish your credit and collections policies
If your company is granting credit without a guideline to follow, it means your company is granting credit and performing collection activities based only on experience and premonitions. To change this, download for free “Credit and Collections Policy, A Practical Guide” to establish your policies and procedures. The benefits will be visible and measurable at the end of the year.
Respect and abide by your policies and procedures
When it comes to collections, the biggest faults occur by not following those policies and procedures already established.
Review your credit and collections forms and templates
Review the layout and content of your current templates. Meet with your credit and collections team and invite your sales team, as well. You will be surprised at the improvements you will be able to incorporate into your templates.
Report all your clients – good and bad
Although this resolution must be part of your credit and collections policies and procedures, I believe it is necessary for this objective to be established by itself, independent. As your clients lean that your company reports payment experience to third-parties, whether a credit bureau or an on-line directory, they will set a priority status when programming your payments. Would you not agree?
There are several options. Many involve fees and some others are free of charge. Dunn & Bradstreet (dnb.com), Corelogic (compunetcredit.com), BlueBook Services (producebluebook.com), and for México: Buró del Transporte (Bureau of Transportation – burodeltransporte.com).