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Building a Strong Credit Foundation to Enhance Collection of Receivables

Building a Strong Credit Foundation to Enhance Collection of Receivables. Don Leaman Credit Manager Trion, Inc. Collecting Information on New Customers. Credit Application (attachment ) Trade References (attachment ) Dun & Bradstreet 800-627-3867 National Assoc. of Credit Management

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Building a Strong Credit Foundation to Enhance Collection of Receivables

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  1. Building a Strong Credit Foundation to Enhance Collection of Receivables Don Leaman Credit Manager Trion, Inc.

  2. Collecting Information on New Customers • Credit Application (attachment ) • Trade References (attachment ) • Dun & Bradstreet 800-627-3867 • National Assoc. of Credit Management • National Wholesale Nursery Products Group • Michele Hamby V-P 281-228-6160 • mhamby@macnsouthtexas.org

  3. Collecting Information • Experian, Equifax • Customers Website • Project Information Sheet

  4. Setting Credit Terms & Limits • Ask customer what it is he is going to buy and how much at anyone time. • Compare customer wants to experiences of trade creditor. • Alternatives to open credit – CIA, Half & Half, progress payments. • Lien Rights & Surety Bonds

  5. Types of Payment Methods • ACH - Automatic Check Handling • Wire Transfer • Lock Box Checks • No Payments to be sent to supplier’s physical address. • Credit card payments

  6. Customer PO’s & Invoices • No discrepancies in the PO”s • Review invoices for Accuracy before mailing. • Email or fax invoices • Issue invoices in a timely manner

  7. In House Collection Process • Get to know your customer well especially the accounts payable people. Build a relationship. • Print aging the first and fifteenth • Call those accounts that have 60+ day old invoices outstanding. Follow up weekly. • Hold up new shipments when existing orders are 60 days old. • Work invoices that have been short paid. • At 90 days past due send 10 day demand letter. Attachment • At 120 days send to outside collection agency, NCS , Robert Clark

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