April 27, 2012 by Stephen
In our line of business, we deal with a lot of credit managers. From large to small companies, each one has a different way of doing things and ensuring that the company gets paid for the work or materials they provide to a construction site. While placing a mechanics lien or a construction lien on a property is one way to secure payment, there are several other steps that credit managers should follow to keep those accounts receivables down to a manageable level.
Over the next couple of posts, we’ll be looking at ways for credit managers or account managers to maximize their collections potential and become one of the most valuable people in their company.
Interpreting creditworthiness from the start is a main goal of a credit manager. Running a credit check on potential customers is important, but what kind of check should be run. The normal reports from Dunn & Bradstreet provide generic, not always useful information. Here are some things that LienItNow’s Credit Check department does that you may want to use yourself.
The length of time the company has been around.
If the company is still filing annual reports with their State of Incorporation.
The company’s average credit line and hight available credit line
Average turnaround on paying bills in number of days.
The length of time with the company’s current bank.
How long the company has been doing business with its trade references.
Try checking into those items and you may find yourself spending less time chasing money. Remember, the credit manager’s job is to be proactive, rather than a reactive. In the next post we’ll discuss securing your right to collect.
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