Magazine article Business Credit

EXTENDING CREDIT: Get Proactive with Account Metrics, Boost Revenues

Magazine article Business Credit

EXTENDING CREDIT: Get Proactive with Account Metrics, Boost Revenues

Article excerpt

As a credit manager, black and white decisions are rarely the norm. Instead, I deal every day in the grey. Whether it's pondering to extend a credit limit or rein in a troubled account, personal interaction and judgment often serve to bridge the gap that financial and other data cannot fully account for.

Working in this grey space has also been at the heart of a recent initiative from our credit department at Servpro Industries, Inc. to meet the company's strategic goals. By proactively analyzing customer data and flagging the specific accounts as potential sales leads for the sales department, on any accounts where we increase credit limits, our credit team has boosted company revenue and improved customer and internal team member relationships. We've also used the same data analysis as an objective means to reward individual team member performance or target areas for future training.

Essentially, credit professionals will pull about 10 account files each week and analyze the data, looking for factors like consistent payment history, debt ratios, annual financial reports and more, including whether a client has requested an extension on a credit limit. In many cases, the credit professionals determine that a customer may qualify for a higher credit limit or improved terms. …

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