How current is the credit information on your established clients?

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 2: Getting updated credit info is a critical strategy.

An outdated credit app is like a month-old weather report….it’s USELESS!

The question can’t be “SHOULD we update our credit applications?”….the question needs to be, “How do we update our credit applications?”

Gathering current credit information on a scheduled basis is a critical strategy in avoiding financial landmines, and any customer that gives you pushback, should be cause for concern. Let me give you the insider credit play on how to get this done!

Top credit departments update their credit applications based on SALES VOLUME…they split their aging into quarters or thirds and assign a schedule based on sales volume.

If the customer is in the bottom third, they might only need an update once every 3 years. If they are in the middle third, they might get updated once every two years, and if they are in your top third customers by sales volume, they should probably get updated once a year or sooner!

The advanced credit play to make this process go smoother, is to pick a financial climate reason that’s relevant to your industry, as the driving force behind the requests!

In practice, treat the credit application as a living document…….. not a one-time hurdle. Get them updated to avoid financial landmines!

In Part 3, we’ll explore in more depth the reasons why updating customers’ credit on a scheduled basis is critically important to your company’s bottom line.

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!