The ideal credit process.
Using Credit Management, you will easily be able to enforce this process for all your new Customers.
Doing this will reduce your financial risk issuing credit to your customers.
1 – Identification
Identifying who you are dealing with is absolutely critical as a first step. After all, how can you enforce an agreement made with the wrong entity?
2 – Terms
These are your “rules”, or in other words – what you expect from your Customer.
When they will need to pay you, how disputes can be resolved and everything else of importance.
This is how you define what you can do if your customer decides not to pay you.
3 – Due diligence
Know your Customers history, know their future. A credit check is far more reliable than trade references ever could be as they do not lie.
However, as this data is up to 7 years old – this is no longer the best way to determine the creditworthiness of a potential customer.
We are working hard to make this better and easier for you right now!
4 – Set payment terms
If you don’t set your payment terms in writing, your customer can assume whatever terms they like. This step removes the guesswork and also gives your customer the “outcome” of the process.
5 – Registration
Becoming a secured Creditor on the PPSR is the only way to get paid before the liquidator if your Customer is liquidated.