Good credit management is paramount to your small business success, credibility, reputation and relationship with vendors and customers. Your credit rating will influence the relationships you are able to build with prospective quality customers and collaboration with vendors and affiliate companies. The use of a credit management system will effectively ensure that your company leverages healthy customer credit profiles, monitor collection issues and get paid faster, spot places to upsell current customers with good payment behavior and potentially make discerning decisions on which of your customers you will extend credit to. On the side of forming corporate relationships you will be able to negotiate better terms of payment to suppliers and as a result grow and expand your business more quickly. Use suppliers and vendors to recommend you as making payments on time and land larger supplier accounts and ultimately receive better credit terms on business transactions. Below are some of the ways you can use a credit management system to grow your business.
Cultivate prosperous lender relationships
Your business credit profile will largely influence the relationship between you and your lender. A successful credit profile will lead to lower interest rates on credit issued to you and you will have a trail of recommendations from lenders who respect and trust you.
Build and maintain healthy customer relationships
The bottom line sales are the lifeblood of your company. There are sales-teams you train all over the country to sell your product and in the process of training sales associates and management there are investments in speakers, webinars, seminars, on the field training or telemarketing training and in other literature such as books (one of my favorite reads is “Swim With the Sharks: Without Being Eaten Alive” a book on ‘salesmanship, negotiation and management teaches you how to outsell, out-manage, out-motivate and out-negotiate your competition.)
- Grow Your Key Accounts (nyreport.com)
- How to get a big customer for your small business (holykaw.alltop.com)
- Avoid business icebergs: Do your due diligence (shoeboxed.com)
- The Mobile Revolution is Upon Us: Part 1 (problog.weddingwire.com)
- How to Deal with Late Paying Customers (grasshopper.com)