Are you catching red flags early?

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 is….Trust but Verify – Part 1: Be curious and DON’T ignore the warning signs.

Loyal customers aren’t bulletproof….and a small slip today can become tomorrow’s write-off, so don’t ignore the warning signs!

There are two tactics that you want to implement to catch red flags early………

Tactic 1 is to….LOG EXCUSES! To look for patterns, you need to log the excuses. Excuses sound credible one at a time but if the story changes each month, from “system glitch,” to “banking transition” and then to “computer upgrade” …..that’s NOT noise, that’s a pattern!

Tactic 2 is to…. BE CURIOUS! When a customer has been paying regularly at 35-40 days for two years straight, but the last two months they’ve paid at 60 days, don’t ignore the trend ….. BE CURIOUS. Call the customer and ask questions like “What changed internally?”, or …. “Is everything ok over there?” and listen carefully to the answers.

If their answers are vague and generic, that’s a red flag!

In practice, curiosity doesn’t have to be a confrontation: you have every right to ask good questions, so be curious, and document your files.

Lastly, learn to escalate to tougher questions when these red flag patterns emerge. By doing this, you’ll turn gut feelings into preventable measures and THAT will save you from some of these financial landmines!

In Part 2, we’ll talk about how gathering updated credit information is a critical strategy to help you avoid those financial landmines.

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!