At a basic level, credit management refers to everything involved in managing the money coming in and going out of a business – the cash flow.

Businesses tend to grant credit terms to their customers and receive credit terms from their suppliers. Ideally, keeping on top of these terms by paying bills when they’re due and making sure payments are received on time should avoid a cash flow crisis.

Unfortunately, it’s not always that straightforward. For example, the longer you extend the credit period or the larger the amount of credit you grant, then the greater the risk of non-payment. It is thought that bankruptcies can often be a result of poor credit management.

In addition, if invoice discounting or factoring is an appropriate route for your business to operate its cash flow then it too must be managed appropriately.

Stringent processes and vigilant monitoring are crucial. Of course, at the same time, you are dealing with people – your customers and suppliers – so smooth relationships with them are essential. As a business’s approach to credit management can make the difference between success or failure, it’s important to get it right.

As experienced, Chartered Institute of Credit Management (CICM) qualified professionals, our experts can help you to maintain or increase your revenue, minimise your risk, and protect your healthy balance sheet.