Blog of the Credit Management and cash collection

Zoom on the cash and risks curves

Focus on this Excel tool to assess the exposure curves on a project and the impact on cash flow month by month

The tool cash and risks curves simulates dynamically the credit risk and manufacturing risk based on monthly costs and payment term applied to invoices. It gives on a monthly basis the actual risks incurred by the seller (loss amount in the event of default by the buyer) and the level of...

02-16-2015

What role for the CFO in credit management?

If the management of credit and collection is done by the credit manager and his team, what is the role of the CFO in the management of this strategic asset?

Revenue growth, optimization of the working capital requirement (WCR) and cash, increase of the profitability and of earnings are all issues related to the management of the accounts receivable orchestrated by the credit manager. The accounts receivable are also the first or second position in...

02-05-2015

What payment methods for export business?

Watch out for traps! The documentary credit commonly called letter of credit is not one and the letter of credit differs drastically from the standby letter of credit. Clarifications needed.

International trade is very specific and differs significantly from domestic trade. Realities are multiple depending on the sector of activity, the country of the buyer and the type of business case. If the means of payment and security tools used are not very numerous, confusion can cause...

02-04-2015

Use online tools of credit management tools!

You need to calculate your DSO and to manage it month by month, to calculate late payment penalties or to assess creditworthiness of your clients...etc? Visit the online tools of Credit management tools.

DSO calculation and DSO reporting : calculate the DSO of your business or for a group of clients or per client. The tool split the DSO into 2 parts: the contractual DSO and the overdue DSO. It also calculates another key performance indicator : the % of overdue. Late...

01-29-2015

How to use the chart of authority in credit management?

The chart of authority is a key tool of credit management. It defines who is responsible of what and what is the level of approbation of each person involved in the credit management process.

The Chart of Authority (CoA) belongs to the credit management policy and establish the level of authority of each person in the organization for setting up credit limits or payment conditions. The CoA has to be validated by the top management and must be consistent with the credit management...

01-20-2015

Which vows for companies?

What are good questions to ask yourself about your company at the beginning of the year?

Translation of the satiric pic of Charb: Growth arrives! What the hell is she doing? Beginning of the year 2015 is the opportunity to ask some questions. What are the vows to wish to a business? A revenue growth, or at least equivalent to the previous year? A profitability in double...

01-12-2015

New tool: specific dunning letter before yearly closing

Get payment of due invoices before year-end in order to improve cash and balance sheet of your company.

New dunning letter template to be used few weeks before closing of financial year of your company.It requests the payment of all due invoices of this year in order to clear customer account and avoid question of the auditors about reasons of overdue invoices.Look at the tool here.

12-11-2014

At year end, put the turbo on debt collection

Why and how to optimize the accounts receivable at end of the year, which often corresponds to the end of the companies' financial year?

For many companies the end of calendar year corresponds with the end of their financial year. The balance sheet as of December 31 will form the basis of evaluation of creditworthiness done by many analysts: Credit insurers Banks Suppliers Clients ...etc. These actors...

12-10-2014

New features for calculating the DSO

Calculate the DSO on several scopes. What is the DSO a group of client, an activity of your company, or a particular client?

A new feature allows you to calculate DSO and to perform DSO reporting on several perimeters. There are many advantages for this segmentation of the DSO as it helps to detect which areas are potential improvements. Using the application for calculating the average cost of financing your...

11-04-2014

New tool for calculating due dates

Online tool to calculate in two clicks due date of your bill regardless of the payment term used

New online tool to easily calculate the due date of your invoice. Select the date of issuance of the invoice and the payment delay to apply and the tool gives you the invoice due date. The proper calculation of the due date is essential to get paid in a timely manner by its customer! ...

10-03-2014