Understanding the risks of poor credit management
Even successful businesses realise, sometimes too late, the impact that poor credit management can have. Prompt payment, on-time deliveries and building customer relationships are all factors that can be negatively impacted when credit management goes wrong.
As a result, trade disputes and customer insolvencies inevitably arise, and the system of protocols and court procedures that ensue is, for many, unchartered territory. By way of example, there are numerous types of insolvency procedures and if one of your suppliers goes insolvent, the effect of each on your business will be determined by the quality of your customer contracts and any personal guarantees in place. This can be particularly worrying when unusual or large-scale projects fail.
Shulmans’ five pillars of successful credit management
Using the pillars outlined below as a joined up approach will strengthen your position at any stage in your trading life cycle.
Robust commercial contracts
When it comes to commercial contracts, prevention is better than the cure. Our commercial specialists can help you to establish robust trading contracts. Up-to-date, bespoke terms and conditions will protect your business as well as improving trust with your customers and suppliers.
Understanding the procedures and options available to you could bolster your creditor position before ‘red-flag’ events occur. In such situations, it’s imperative to contact our experienced insolvency experts, as soon as possible. Moving swiftly means we can arrange representation for you at key meetings as well as lodge claims on your behalf.
Maximising debt recovery
Chasing debts can be worrying. Our debt recovery team has the tools and strategies to help. From completing the right paperwork to appointing a suitable insolvency practitioner, our expert guidance can hugely improve your debt recovery rate.
If you end up in a dispute with a customer, you will need commercially sensible advice and representation. Our team works strategically to navigate the relevant obligations and court procedures to deliver the best possible conclusion. Working quickly, effectively and drawing on the skills of specialist advisors (including non-legal experts where appropriate), will all help to achieve the outcome that best suits your commercial objectives.
Training to improve performance
Improving in-house credit management skills will assist your team in spotting potential risks early and dealing with them swiftly. In the long-term, training from our team can save money and will encourage cross-team participation inside your business.
How we can assist
Shulmans puts into practice any or all of our above five pillars, tailored to your individual requirements. Our Credit Management Services team draws expertise from across our specialist areas to provide a bespoke, ‘one-stop shop’ solution to maximise your trading protection.
We provide practical help fast, as well as reliable advice to suit your specific needs.
Our Credit Management Services booklet explains more about Shulmans’ fast and effective solutions.