Capacent regularly addresses its clients’ credit risk in several ways. In each Working Capital Management project, collection routines and payment terms are reviewed and improved. We also support clients in developing and rolling out Group and local credit management policies. We find time and time again that, contrary to popular belief, it is possible to significantly reduce capital tied up in A/R and credit losses without in any way hurting the business. The key is clear internal responsibilities, structured reporting, effective collection routines, and clear communication with customers.

If you ask your staff who is ultimately responsible for receivables, will they all give the same answer? If not, your credit management policy may need to be either sharpened or better anchored and understood in the organization.