Credit management: what it is
Having become a priority for companies, credit management represents the real strategic factor for guaranteeing financial flows and reducing unpaid credits.
By implementing a preventive management policy it is possible to build a new credit normality, adopting tailor made control systems based on the various sectors of intervention.
The importance of credit management.
It is absolutely not possible to browse by sight. When a company’s credit is put in danger, it is necessary to implement a concrete, targeted and defined attack plan. Unpaid invoices, untraceable customers and excessive collection times lead to collapse even the most solid companies, which is why avoiding a deadlock is fundamental and a priority to stem the risk of default.
How to intervene then?
With adequate credit management, evaluating in advance the economic and financial status of the existing customer and / or potential customer. All this involves the need to make use of consultancy companies that are experts in control and investigation systems, able to provide all the commercial information useful to avoid any customer insolvency.
In summary, it is a question of adopting a specific and structured system of evaluation or rather of consideration of the risk that a company may incur, collecting all the information useful for defining and controlling the financial situation of the customer portfolio and also for create and manage new ones.
How to recover a stranded credit.
In the event that, even a good credit management, leads to highlight the so-called problem loans, that is, those that seem irrecoverable, you will have to think about a recovery action to be activated through a company of credit recovery accredited.
It is in this case that the speed of intervention and the collection of financial information on the debtor will become two decisive assets for obtaining the payment of one’s credits.
Limiting costs and optimizing results are the objectives of a company when it intends to proceed with a debt collection out of court, adopting a defined amicable process based on activities that vary depending on the individual case.
A company of debt collection structured also provides its clients with a team of highly specialized lawyers able to resolve and manage any problem relating to unpaid credits.
From asset information to debt collection.
When liquidity is in short supply, every good administrator should ask himself the following question: “why haven’t I checked the takings?”, a question that is quick to answer. The first rule of a successful business is to periodically and systematically check revenue, then proceeding with a programmed system of payment reminders.
The informal payment requests made by the company, if the results are late in arriving, must be followed by the studied and planned action of a company of debt collection .
The debt collection short list.
- Collection of the debtor’s equity and financial data in order to know in detail the financial and therefore payment capacity of the debtor.
- Reminder activity that is carried out through communications containing the details of the debt and the related intimate deadlines to be respected.
- In the event that the debtor does not pay the balance of his debt, he will proceed with the sending of subsequent reminders and the contextual formal notice.
- If the debtor still does not proceed with the payment, an injunction will be used, the judicial act most used in such circumstances, and then proceed with the subsequent executive actions aimed at the attachment of the movable and immovable property of the debtor party.
Requesting payment of an unpaid invoice can turn into a real torment for the creditor if he is not supported by highly specialized professionals, especially given the instability of the current economic-financial scenario.
Our professionals will tend to start a mediation process built ad hoc for clients in order to bring liquidity back to the company coffers and free up resources to invest in new business scenarios and prospects.
Relying on a company like ours means being able to recover the liquidity that you thought was lost, optimizing collection times and costs and thus determining a marked improvement in your company cash flow.
We will follow and support you step by step in order to quickly reach your goal.
Do you need further clarification? Our experts are at your disposal.
Credit Group Italia is accredited by the Bankruptcy Section of the Court of Milan as a judicial and extrajudicial debt collection company.