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- Ten Tips on Deduction Management
- Ten Tips on Customer Financial Statement Analysis
- Ten Tips on Limiting Bad Debt Losses
- Ten Tips Relating to Chapter 7 Bankruptcies
- Ten Tips on Communicating with Your Manager
- Ten Tips on Handling Angry Customers
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- Ten Tips on Prioritizing Work in the Credit Department
- Measuring Job Performance - Ten Tips
- Ten Tips on Customer Financial Statement Analysis
- Ten Creative Collection Tips
- Ten Creative Problem Solving Tips
- Tips on Extending Credit to Newly Formed Companies
- Ten Collection Do's and Don'ts
- Tips on Choosing a Third Party Collection Agency
- Ten Ways to Find Customer Financial Statements Online
- Ten Tips Relating to the Use of a Personal Guaranty
- Asserting the Ordinary Course of Business Defense to a Bankruptcy Preference Demand; Ten Tips
- Ten Tips on Filing a Proof of Claim
- Ten Tips on Professional Accreditation through NACM
- Ten Things Not to Say to a Customer
- Ten Tips About the Discharge of Debts in a Chapter 7 Liquidation Bankruptcy
- Ten Tips on Hiring and Training New Collectors
- Ten Tips on Building a Better Credit Application
- Ten Tips on Managing Change in Credit
- Ten Tips on Automating the Cash Application Process
- Making Effective Proposals
- Justifying the Cost of Collection Management Software
- Tips on Reducing Credit Risk
- Tips for Handling Unearned Discounts
- Ten Tips about Online Credit Training Programs
- Ten Tips on More Effectively Interacting with Customers
- Comments about Risk Management
- Ten Comments on the Roles and Responsibilities of the Credit Department
- The Roles and Goals of External Auditors
- Ten Key Performance Metrics for the Credit and Collection Department
- Tips on Stress Management in the Credit Department
- Ten Benefits of Online Training
- Ten Tips on Networking Online with other Credit Professionals
- Ten Tips When a Customer Closes its Doors
- Ten Ways Credit Managers get Fired
- Ten Key Financial Ratios
- Tips for Handling Difficult Discussions with Credit Team Members
- Ten Things Not to Say to Debtors
- Ten Tips on Attending Meetings
- Ten Tips on Effective Meeting Follow up and Documentation
- Ten More Meeting Tips
- Ten Tips on International Interactions with Customers
- Effective Teams, Ten Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
Ten Tips on Customer Financial Statement Analysis
- Immediately examine customer financial statements you receive to determine if any require your immediate attention based on serious deterioration in your customer’s financial health. Financial statement should always be examined for validity
- Use a spreadsheet into which data can be input and ratios can be automatically generated
- Delegate the task of populating this spreadsheet to someone other than the credit decision-maker
- Ratios should alway be calculated. Calculate no more than ten ratios
- Always calculate the same ratios
- Know what range of values you expect to see in the ratios calculated, and take special note when ratios are outside of the normal range
- Consolidate the financial information including ratios for at least four periods and ideally periods. Doing so makes trend analysis simple
- Don’t sweat the small things. For example, a customer that earned $10 million after two years ago but reported a profit of ‘only’ $5 million this year nevertheless reported a net after tax profit
- Be sure to request the auditor’s opinion letter. The alternative involves wondering about the accuracy of the financial data received from your customer
- Purchase and use credit decision support software that calculates ratios and trends once basic data has been input, and also offers recommendations relating to credit limits and payment terms.
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