Should You Use Credit Management Controls as Part of Your Business?
As a business professional who offers goods and services to individuals and other businesses, your main goal is to turn a profit. That, of course, means making sure that you are continuing to make sales. If you offer credit to your clients, you may be worried that you’ll not be able to set the right credit limit. If you set it to low, you’ll worry that your clients won’t be able to get the services from you that they want or need. If you set it to high, you’ll worry that the payments won’t be made. So, you might decide to avoid all of this and just not allow the use of credit lines. Is that the right decision?
Credit Management Controls Increase Revenue
You may be worried that instituting credit will actually decrease your profit. While there’s always risk involved with credit, it’s not necessarily true that using credit will put your profit at risk. When you implement credit management controls, you can actually increase the revenue for your business.
Using the proper credit management controls in your business makes the services that you offer more accessible for your target market. Here’s an example. Let’s say that you offer a service that costs $5,000.00. Think about the businesses that need your service. How many of them have the ability to simply give you $5,000.00? Some of them might be able to do that. However, not all companies keep a lot of liquid assets. Other companies require multiple sign offs on large purchases. So, what if you had one client who could pay you $5,000.00 now and you had seven other potential clients who could pay that amount out over time and with interest? Let’s say for the sake of argument that those seven are well-qualified and low-risk. Put in that perspective, it’s a bit like asking would you rather have $100.00 if you could have it right now or would you rather have $10,000.00 at the end of six months. You’d definitely want the larger amount of money. Who wouldn’t?
Taking Some of the Risk Out of Credit
Here at Clients A.R.M. we know that it can be difficult to implement the proper credit management controls. We also know that there are many people would want to spend their time focusing on their business instead of looking to set up the proper credit guidelines. So, we’ve put together a free review to help companies just like yours take the risk out of credit. We can help set up and effectuate the appropriate guidelines for your company. The results? More businesses will have access to the great services that you offer, and your business will experience an increase in revenue.
If you’re ready to book your free process review, click here. Let our expert credit account managers help you grow your business. Don’t forget to check out the other amazing services that Clients A.R.M. offers for your business!