Credit Management Consulting

Credit Management Consulting

Our Credit Management Consulting services are valuable in assessing the following areas:

Ledger Validation

We specialise in providing cost effective debtor book reviews providing an opinion on what your asset is actually worth and your potential exposure to bad debts.

  1. Our reviews are conducted in two different ways:
    Onsite review of your debtors ledger consulting with your Credit Management Team and contacting your major customers.
  2. Working remotely to confidentially review the value of a debtors book in sensitive situations including the sale or purchase of a business. Years of experience, involving the review of literally hundreds of debtors ledgers allows us to quickly form an opinion on the value of a book.

Review our recent case study where we reviewed the debtor book and assessed the level of debtor realisations as part of a business acquisition.

Team Evaluation

We sit with your Credit Management Team and review how they function. Typically the evaluation will commence with a ledger review involving the Credit Manager and Collection Officers to get a feel for the level of ledger knowledge, energy and commitment within the Team. Our evaluation will also include consultations with key stakeholders within your business.
We then make recommendations for improvement which may include restructure of the Team and where necessary performance management. One of our key service offerings is the ongoing mentoring of the Credit Manager and the Collection Team.

Review our recent case study where we evaluated the capability of the National Credit Manager and Collections Team for a building services organisation.

Collection Performance Review | DSO and Ageing Targets/KPI’s

We look at your historical collection performance and after taking into account your industry sector and customer base form an opinion on your collection performance.
Very often collection targets are either too difficult or too easily achieved. Working with key stakeholders we help you set challenging but sensible collection targets with recommendations on how to achieve them. We then integrate targets into the KPI’s of the Credit Manager and Collection Team.

Credit Management Roles & Responsibilities Statement

Credit management and the successful collection of sales invoices is a business wide responsibility. Often we see a disconnect in terms of responsibility between sales, operations and finance which hinders collection performance.

We specialise in ensuring all parts of your business - from sales to operations to finance - understand their role in the credit management and collection process. We leave behind a suite of concise documents which outlines how the business approaches Credit Management and the role key stakeholders have to play in the process.

Outsourced Collection Review

Outsourced collections can be divided into two specific categories:

  1. “Soft” or routine collection calls. A number of organisations outsource the routine collection of either part or the whole of its debtors ledger. We assess the effectiveness of your current outsourcing partner and whether those collections would be better off handled “inhouse”. For those businesses that do not outsource collections, but are considering this option, we assess the benefits of outsourcing collections for your business.
  2. “Hard” or delinquent collection calls. Most businesses outsource the collection of its delinquent debtors to a Collection Agency or to a debt recovery solicitor. Frequently we see there is little thought given to this process both in terms of strategy and pricing. We review your current procedures and then recommend the optimum debt recovery model and pricing.

Gerald acts as a consultant to Sewell & Kettle Debt Recovery Services and this relationship allows you to tap into the expertise of a boutique debt recovery firm offering flexible pricing arrangements.

Ledger Turnaround

We specialise in turning collection performance around quickly. This sees us working with your Credit Manager and Collections Team to drive collections hard to not only achieve short term goals but to lay the foundations for successful collection performance moving forward.

This service would specifically assist businesses facing the following issues:

  • Temporary cash flow problems.
  • Little headroom in their invoice finance facility.
  • High interest charges on their invoice finance.
  • Preparing for a sale and wanting to present the best possible debtor profile.

Review our Case Studies

Contact Gerald today - 0428 986 160