What is business credit management? 

If you sell your products and or services to another business with the anticipation of being paid at some point in the future, then you are engaged in business credit management. 

If you do extend credit how do you know your customers will pay you when the bill comes due?  This policy of extending credit involved a credit risk to your business and if you have only a few customers then you have a credit risk and business risk called concentration of risk, and both can put your business out of business!

Our credit management services will work with you to review all those internal and external factors which impact your need to sell on open account terms.  We then working together, develop an effective credit management policy to manage the credit risk and to safeguard your investment in accounts receivable. 

We will also review your collection procedures to determine the steps you currently take when a customer does not pay you on time.  An effective Collection Policy will have clear steps to take on contacting customers about delinquent balances. Ally First Accounting will work with you to develop past due accounts receivable letters which will help in collecting past due accounts receivable.  We can also discuss accounts receivable insurance for small business to minimize credit risk.  An effective policy will minimize cash flow problems and will also send a message to your clients that you need to be paid within the agreed upon payment terms.

Have questions on how to develop an effective Credit and Collection Policy and Procedure?
Ask Ally First!! 

We are your trusted source for business Credit and Collection management.