Managing commercial credit in today’s economy can be a real challenge. For telecommunications companies, pulling a report can be helpful in deciding whether or not to offer service to a consumer. But pulling credit reports alone is simply not effective to perform true, proactive portfolio management.
The following article was originally posted by Minnie Blanco on the Experian Business Credit blog.
If you make decisions just by pulling credit reports, you may want to think about how you can manage your accounts proactively. Pulling a report is helpful in deciding whether you should offer credit to a business. But, consider these basic steps when looking for any negative trends:
- Develop a policy for how you’d handle accounts that are current, delinquent, bankrupt, etc.
- Segment your portfolio by those accounts who pay within a particular range of time or who fall within a particular category, i.e. Current 1-30 days, 31-60, 61-90, 91 plus or filed bankruptcy.
- Review your accounts and apply your company policy to that particular segment.
By applying steps 1 -3, you’ll be able to proactively identify good candidates for increased credit limits, as well as those you’ll need to pay closer attention to because they may be headed for delinquency or collections.
BusinessIQ allows you to easily pull reports, segment accounts and submit them for account review. It’s easy-to-use…plus, the Portfolio Module is free! Here’s a demo on the application. Look for future blog posts from me where I’ll write more about managing your portfolio. And, feel free to comment and let me know if there are specific topics you want to hear about.
