Credit and Collections in today's economy.

Well here it is, my first attempt at blogging. One of my partners suggested a post about what's different, given the current financial crisis. So here goes!



What we are seeing is that a lot of credit managers are not placing accounts for collections because they believe that they have good customers that will pay, when their financial situation improves. While that may be true in some cases, in others it may be that your customer is taking advantage of your good nature and using the economy as an excuse. In addition, that does nothing to help your company's financial situation, and may set off a chain reaction that puts every one's finances at risk. You talk about a meltdown? What if everyone suddenly stopped taking action? I am a firm believer in making a plan, and sticking to it, no matter what the economy is like. If you have a credit and collection policy, and follow that policy, when a good customer wants an exception to your terms, you can blame the policy for not allowing it, rather than make it personal. Additionally, if you do have to place them for collection, you can blame your policy for that as well. To coin a well known phrase from "The Godfather", "It's not personal, it's business". That type of thinking just may be what keeps you afloat when others are sinking around you. It's not personal, it's business. You set a precedent by always following your plan, and watch your cash-flow improve dramatically. Yes, I am part-owner of a collection firm and would love it if everyone that ever reads this would become a client of ours but the truth is, you need to take action in whatever way you decide.