Why should you be cautious with your best customers?

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 3: Why past performance doesn’t matter!

If you live in Florida and your house hasn’t been hit by a hurricane in 25 years, do you stop watching weather reports? Of course, you don’t…… people who live in Florida know all too well that bad things can happen in an instant. How does this relate to receivables you ask?

Well…. in 2006 Circuit City had “12 BILLION DOLLARS” in sales, yet, just over a year later they filed bankruptcy, forcing over 90,000 secured creditors to write off 2 billion dollars in debt! The message is clear…. complacency in credit is DAN – GER – OUS!

What would happen if your best customer lost their biggest client…. or maybe their CEO to a rival company? Stuff like this happens all the time, and when it does, it can turn good companies bad fast!

The insider credit play that top rated credit departments use is to establish RESET POINTS with every customer. Every 6-9 months, behind the scenes, treat each customer like they are new to your books. Do a little “snooping” like running credit reports or internet searches for related news and blogs……maybe even hit their social media pages. If they used to post daily, and the last post was a month ago, there is likely trouble brewing.

Whatever you do, don’t let nostalgia cloud your judgment. A customer’s value is only as solid as their CURRENT balance sheet.

In Part 4, we’ll go over the importance of understanding why EMPATHY shouldn’t have to mean APATHY!

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!