Whatever business you’re in, if you are a Business to Business supplier there’s every chance you’ve been asked to provide a credit account. In many industries a credit account is taken for granted. If you’ve got a handful of large clients, or you build to order it may be a natural part of your business.
If you have a high frequency of sales and a large number of customers, credit accounts can be a real headache.
Credit accounts tie up people - making credit decisions, creating monthly statements, chasing money and maintaining records.
Credit accounts tie-up money – the money owed is cash flow that could be working in your business, and in the worst case it can be written off as losses.
Credit accounts tie-up energy – if you’re not a specialist credit provider then credit accounts are a distraction from the business of the business.