April ICEL Meeting Recap by Melissa Mickelsen, CBA, Geneva Rock Products, Inc. Dr. Aric Krause with Westminster College joined ICEL in April to present his annual economic update. He started by noting that the economy is not as bad as it could be, but we are still looking at several serious challenges. He summarized by [...]
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By DeAnna Leahy, CCE, Sunroc Corporation Information for Subcontractors and Suppliers: The State Construction Registry (SCR) allows subcontractors and suppliers to protect lien rights. By filing a preliminary notice through the SCR system, subcontractors and suppliers alert property owners, banks, title companies and general contractors to their involvement in a project and expectation of payment. [...]
We find ourselves asking different types of questions like “How can we” instead of “Who should we.”
Our education and experience tell us that as creditors and collectors, we can’t have a lenient credit and collection policy. Credit policies and procedures should be stringent and well researched. There must be a careful evaluation of a company’s ability to pay back the amount of credit we have entrusted to them.
The right of reclamation under the Uniform Commercial Code (UCC) allows credit grantors the right to reclaim goods when the creditor discovers the customer received goods while the customer was insolvent.
Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) measures the average number of days it takes a company to collect payment of invoices. Tracking DSO helps a company determine their collection effectiveness and may indicate whether current credit policies and procedures require modification. In the current economy and shifting industry conditions, it is particularly important to monitor collection effectiveness and bad debt write-offs.
Lessons learned in a credit department of a business may be costly. How often could a bit of knowledge have saved thousands of dollars – if only they’d known.
The Basics That Every Credit Department Should Know:
Top Ten Reasons for Education
10. Your savings account is in the ashtray of your car.
9. The only thing your credit card is good for is scraping frost off your windshield.
8. Your medical plan is not to get sick.
Invoice every business day.
FTC Consumer Protection Tips on avoiding financial scams, free annual credit reports and computer virus & spyware.
NACM proudly unveiled the National Trade Credit Report, featuring credit scores and “days beyond terms” statistics among tools designed to provide specific trade payment data drawn from a database of more than seven million trade lines