Tag: credit application

Professionals in the credit and collections business point to certain key elements that improve overall collectability of accounts once they reach the point when they are placed into collections. The factor that is nearly universally agreed upon is age of the account from date of last sale at the time when it’s placed into collections. There are, however, other important factors that should be considered, many of which begin before a sale ever takes place.

In the business world, January is often a time to reflect and build on the successes of the previous year; make changes to portions of your strategy that didn’t work out as planned; and prepare for what you ultimately expect to be a better year than the last one. Spending some time fleshing out a full strategic contingency plan that encompasses all aspects of what that growth can mean to your company as a whole is a wise investment of time.

An effective method of opening those lines of communication is to periodically update your credit application with your existing customers. New and updated information from your customers can provide you with strong talking points that can improve your relationship with them, as well as obtain information about changes they may have undergone since the last application was submitted.

Internal collections policies and procedures actually BEGIN with the process of granting credit to a new prospective customer.