4 Most Useful Tips for Managing Credit Customers During Pandemic
According to the most recent data provided by ABS (September 2020), 38% businesses have decreased in revenue during September and 75% expecting their revenue will either stay the same or decrease along October. Now, it's time to look at our credit sales accounts - which contribute to more than two thirds of the total value of sales to B2B customers in general.
Here are the tips Xservice Credit Management would like to share with you for managing credit accounts:
1. Review accounts receivable & aging balances, category credit customers by their risk level - Low/Medium/High Risk. Set a clear credit policy and recovery process depend on customer category;
2. Adjust collections strategy for each category, focus on risky customers, set the high risk customers first prior to be collected, get all cash that can be collected, and keep an eye on the medium risk customers;
3. Keep in touch with risky customers, maintain a good relationship even they running behind of their payments. So that we'll be noticed if they are experiencing any (cash flow) issues;
4. If there is any customer struggling with cash flow, talk with them to see how can we help, as our goal is for a win-win result, offer some flexibilities for our services/products and payments. Because this would make our collections better and potentially boost customer relationships, help them drive out of their cash flow crisis, they will be more loyal than before!
Remember to seek professional advice before things become out of control, so that you could avoid cash crisis before it hits and ensure the life blood of your business never stops!
Contact us NOW if you have any concern for your credit accounts, as professional debt recovery agency, we are always here to help!
Need more advice about debt collection? Read our blog “Challenges & Opportunities for Businesses in 2021”.
Consider our “Receivable & Credit Management” service.
Learn more about “Commercial Debt Recovery Melbourne”.