Newsletters

In This Issue
- Optimal Credit Policy
- Balance in Credit and Collections
- Know Your Customer
- NACM Demand Letters Really Work!
- The Ticket

Looking Ahead

Help gain information on your customers. As a member, their information could help build the database on your customers as well not just a one- way street. more Info

Optimal Credit Policy

by Kelley Kunz, CCE, Martin Door Mfg

Most of us have a credit policy in place. It may have been in place for years. What do you think about your credit policy? Do you refer to it daily? Does it help you protect your company's assets? Credit is an art, not an exact science. We are faced with unique and difficult situations everyday as credit professionals. Being a credit professional isn't easy, but we can make it a little easier with the right tools. One of those tools should be your company's credit policy.

If a customer bounces a check, what do you do? Does your credit policy include returned checks? Does your company report NSF checks to NACM? Your credit policy should give guidelines for handling NSF checks.  View full article

Balance in Credit and Collections

by Duane Lee, CCE, S O S Staffing Services

I find that I am constantly trying to "balance" credit risk. An example can be in the area of Bad Debt expense. Bad Debt is a normal cost of doing business. Anytime you extend credit to a customer you are exposing your company to the risk that the customer is not going to pay you for your goods or services. Experienced credit managers learn that they must balance the credit risk of the customers in their Accounts Receivable portfolio. If they are too conservative and turn away all customers that have a higher risk of loss, they can hurt sales by reducing revenue. If they are too generous in their extension of credit to higher risk customers, they can end up with increased bad debt which reduces profitability.  View full article

Know Your Industry

by Demaree Hill, CBA, Commercial Lighting Supply, Inc.

You are a credit manager. You work in the office. You don't need to know the ins and outs of your industry. This is a total misconception. Knowing even the very basics of the business you work in can be an effective tool for collection.

How many times have you called a customer to collect on an invoice and they ask you, "What did I buy? What was it for? What are these part numbers? I'd like to know what I am paying for!" And how many times do you tell your customer, "Um, er, uh, let me ask my sales staff and get back to you." Or worse, "I have no idea!" View full article

NACM Demand Letters Really Work!

by Karen Schindler, Tri City Nursery

This month I decided to try 10 day demand letters since they were being offered FREE in December by NACM.

I sent out 8 letters and, to my surprise, I heard back from all 8 customers. I either got a promise to pay or payment from the customer.

I am thankful for NACM and the chance I had to send these letters out before sending them to collections. I appreciate the services that NACM offers and the help the Collections Department gives to me. Thanks NACM!

The Ticket

by Georgette Bevan, CCE, NACM BCS

In French, the word etiquette literally means "the ticket." In business, etiquette can be the ticket to making a good impression and getting ahead in business.

Technology and communication methods put a new spin on what's appropriate in business today. Don't place keys, purses or cell phones on tables. Silence is golden! Turn cells phones off and do not text or read texts during meetings! If you absolutely must take a call, quietly leave the room before speaking. Be absent only a few minutes before quietly returning. View full article