Business Heart Beat.com

5 Ways To Deal With Your Business Credit Risk.

I had spoken many time with the business owners in Asia. They all knew that the most important issue to survive in business are keeping their head-high to generate more revenue but they always encountered problem over the customer credit control.

This becoming a norm especially in this economics turn-around periods, without proper planning on cash-flow and credit control, you would not be able to last longer even though your customer are knocking on your door.

As a business owner, obviously your goals are not merely to growth your business but to be able to control your risk in your credit control

In online business, your risk exposed to the credit would be limited as your online merchant or payment provider would shields most of your risk except some abnormal credit card frauds case. But, it would be a different case for offline business owner.

To minimize you are running into credit risk, you may want to consider offering further discount for COD (Cash-On-Deliver) option, or offering short-period credit-limit for new customer (provided your sales personal had conduct field survey for their company outlook, staffing, location and their payment system/policy) as to ascertain it credit-worthiness.

Furthermore, you could try to sourcing some information from their current or previous supplier to check for their payment “smoothness” (of course, you need to adopt cautious action here as to avoid backfire). You could get your account person (or your sales person) to visit their department heads as to understand their payment process and other information.

You may want to avoid offer any larger credit limit upfront for new customer without going through small credit limit or sourcing Credit Agency Report.

Finally, it should discuss with your accountant to know that your business credit risk so that your business could survive in the event of encounter any negative outcome.

When you offering credit-term payment to your customer next-time, consider the below options:

1)Cash-on-delivery discount.
2)Stagging Credit limit offer
3)Field-studying
4)Supplier checking/referring
5)Credit Agency Report/Bank References

Hope this could provide some idea for your credit control. And don’t become your customer business financier, unless you could afford the risks.

Hello Business World!

With economic heading to the south, corporate around the world are cutting down their head-count in hope to survive of this world crisis since after World War II.

Some corporate even trimming their sales team to suite the head-count quota as this would making their team weaken as they keep afloat of surviving stage.

They should instead focusing on expand their sales-force to conquer more market share instead the other way round.

Regardless you were from SOHO business or big corporation, the most important things is keep sales generating cash-flow. In order to do that, you need your teams to establish a system call Sales Generating System, just like the way of human heart-beat, the Business Heart Beat are important not for survive but to triumph for greater business growth.

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