Published Articles by David Balovich
||THE SEVEN STEPS TO A SUCCESSFUL CREDIT
The viability of every business activity is a result of daily changes in
its net working capital. We define net working capital as current
assets [working capital] minus current liabilities.
For the credit department that means converting as much of the account
receivable into cash and avoiding bad debt write off. This is
generally accomplished by qualifying the customer base
using character, capacity and capital and strengthening
the customers promise to pay through the use of profitability
enhancements; guarantees, security agreements, letters of credit,
joint check agreements, etc.
Many credit departments are very successful in their endeavors while others
struggle to maintain acceptable performance standards and often fall
short of their goals.
Why? We believe it has to do with the attitude and philosophy of key personnel
in the organization towards credit and collections. Over the past
fifteen years, we at 3JM Company have studied successful credit operations
and developed a seven-step program that we believe makes the difference
between a successful credit operation and one that continually falls
short of the organizations expectations.
We would like to share our program with you. The cost is minimal but you
will have to do more then read this column to obtain it.
Send a number 10, self-addressed, stamped (. 33) envelope to
Seven Step Program care of 3JM Company, PO Box 406, Lake
Dallas, TX 75065.
We will send you a copy of our program.
I wish you well.
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Lake Dallas, Tx
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