Credit Management Consultancy

Cash flow, and hence effective credit management, is critical to the survival of any business. Whilst especially true of smaller companies, large corporates can also suffer from the negative effects of poor performance of the credit control function. Credit management can be overlooked by management and additional help and skills may be required to get the area back on track.

Sterling’s Credit Management Consultants have the knowledge, experience and tools to help you to improve cash flow, reduce bad debts and improve customer retention. Whilst we use a proven best practice approach, each project we undertake is tailored to meet the individual needs and objectives of the customer. We appreciate the need to demonstrate value and an immediate return on investment, so for small businesses our consultants can start with as little as 1 day on site which is usually enough to give the client quick wins and improvements in the areas needing urgent attention.

Our Senior Consultant has over 30 years’ experience working as a director of credit and credit manager in various sectors and sizes of business from SME’s to international corporates with a track record of success, and is a fellow of both the Chartered Institute of Credit Management, as well as the Association of Credit Professionals. He has served as a member of the technical advisory committee and chairman of a branch of the chartered institute of credit management for 5 years.

Depending on the requirements of our client, our projects can include the following areas:

• Review of the entire order to cash process including up-stream process.
• Putting in place an effective credit control policy and a robust credit process.
• Establish credit limits and payment terms with continuous management.
• Check the new customer take-on process including credit and entity checking.
• Ensure terms and conditions provide protection and are incorporated appropriately.
• Check compliance with credit insurance policies.
• Review the query resolution process and investigate the cause of repetitive disputes.
• Ensure that existing systems are being used to best effect (in particular for automation of admin in the credit control department), and propose cost effective 3^rd party tools if appropriate.
• Check that the credit control team are focussing their time and attention on the areas which have greatest effect on cash flow and profit.
• Coach all relevant sales, customer service and finance staff to ensure compliance with credit management policies and process.
• Improve collection strategies.
• Test the abilities of credit control staff and provide coaching and training if necessary.
• Design management reports and KPI’s
• Gain buy-in from stake-holders within the business should improvements be necessary outside the credit control function (for example improvements in the sales order process or query resolution process).
• Examine the escalation process and ensure that any 3^rd party service providers are providing best service (debt collection, legal, credit insurers, invoice finance providers).

We will advise on immediate changes to provide quick-wins, along with longer-term improvements.

A key deliverable from our projects is the Credit policy, our consultant can develop a policy from scratch or improve the existing policy.  This document should cover the entire order to cash process, helping all stakeholders involved to understand the importance of their role in the procedure. This leads to a better understanding of the credit control function by the management team, sales and operations.

The policy document sets out expectations, service levels and the processes involved in granting and facilitating credit terms, terms of business, the credit application process, rules for acceptance or decline and credit terms and putting a client on stop, authorisation levels and sign-offs, payment options, collection procedures, liaison with sales and operations, credit limit reviews, query and dispute handling, collection letters and emails, debt escalation timescale and procedure, 3rd Party suppliers.

We are able to provide ongoing advice and follow-up meetings to check the effectiveness of measures introduced. We are also able to provide training to make your credit control team more effective.

Please contact us to find out more.