Future Trends in Business Credit and Receivables Management

The Credit Research Foundation published a study in May 2005 on this topic. Following are some general comments – the full report can be purchased from CRF for $40 at www.crfonline.org.

This booklet represents the culmination of a two-year effort on the part of a number of credit professionals whose interest was to recognize the position that receivable management holds in today’s business environment and identify how receivable management and more specifically credit professionals could position the function to better serve their respective organization moving forward.

The study reveals that we are in the advent of a period of change that should foster continued transition. Business processes will have to adjust to accommodate and exploit the technological tools being introduced to create efficiencies, productivity and real-time flows of business data.

With automated decisioning becoming more sophisticated credit management will use notes from customer interactions and collection experience, as well as e-mail and other streams of unstructured communication and couple that with traditional sources of credit information to significantly improve the prediction of customer behavior.

As businesses recognize the potential of significant growth, traditional international trading boundaries will give way to a multinational business structure, providing a major challenge for the credit professional who is left to deal with obstacles such as language barriers, cultural differences, valuation of various world currencies, political risks, international catastrophe and regional economic turmoil.

The documentary reflects input from credit professionals, senior financial managers and sales management from around the country detailing their vision of the future. It is the hope of the Credit Research Foundation that their input will provide credit professionals with a sense of future trends so that they may adapt accordingly and position the receivable management function to be proactive rather than reactive in meeting the future needs of their respective businesses.

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