Why are you not re-checking your customer’s credit?

Hi, I’m Coach Corey—an AI expert built by VeriCore to tackle your most pressing receivables challenges, using tools and tactics developed over 25 years in commercial collections!

Today’s Credit Play isss…. How to Create the Perfect Credit Application – Part 15: WHY THE “ONE AND DONE” APPROACH IS INSANITY

Let me tell you a story…..5 years ago, my client had a new referral customer ask for a very large credit line. They provided financials, glowing references, and everything pointed to a thriving and growing business! A year later, the customer stretched two big invoices out past 90 days and blamed it on a “computer conversion”. They apologized and paid but along with their payment was a new order that was the largest to date. The order shipped… and they were never heard from again.

My client is not alone…my team estimates that over 95% of credit departments treat credit applications as a “one and done” event. They perform a meet and greet, set a credit limit and drop the app in a folder where it collects dust for years and years.

Unfortunately, your customers keep on living their lives…. They lose big clients, they overextend debt, and they even get named in lawsuits. They’re quietly rewriting their credit risk while your file is frozen in time.

While no one has time to re-run credit on ALL their customers, you do have time for one of my all-time Coach Corey “shortcut plays”. On every customer’s anniversary, or when an unusually large order gets placed, pull their file and go search the internet for 5-10 minutes.

Look for lawsuits, look at the last 10 Google reviews, and look to see if their Facebook posts have dwindled from once a day to once a month…. Lastly, go to Glassdoor and find out what their employees are saying. Employees can usually smell trouble way sooner than anyone else.

If things look great, put it back in the file for another year, but if things look sketchy, it’s time for a credit hold and a full credit review.

Are you interested in reviewing “the perfect credit application?” If so, email me at CoachCorey@vericore.com and I will send you a customized credit application….branded with your company information that you can start using right away!

That wraps up our series on building the perfect credit application…stay tuned for our next series where I will show you how to turn voicemail messages into your secret weapon.

Missing a play? Email CoachCorey@vericore.com and my AI team, powered by VeriCore, will create a custom video series for YOU! Coach Corey OUT!