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Think Like a Lender: A Miniseries on the Five Cs of Business Credit (Part 2 – Character)

Past actions do not always foretell future outcomes, but nearly always provide meaningful insight into future behavior.  As Part 1 of our miniseries outlined, the Five Cs of Credit framework, long a mainstay of commercial lenders, provides a structured approach for trade vendors evaluating their customers’ creditworthiness.  The first C, Character, assesses a customer’s willingness,Continue reading “Think Like a Lender: A Miniseries on the Five Cs of Business Credit (Part 2 – Character)”

Think Like a Lender: A Miniseries on the Five Cs of Business Credit (Part 1 – Introduction)

Introduction Commercial lenders consider five factors – the “Five Cs of Credit” – when assessing the creditworthiness of a prospective borrower.  The Five Cs are also valuable to trade creditors.  This six-part series introduces the Five Cs from the standpoint of a trade creditor considering whether to extend credit to a new customer or extendContinue reading “Think Like a Lender: A Miniseries on the Five Cs of Business Credit (Part 1 – Introduction)”

Five Key Steps to Designing a Bulletproof B2B Credit Application

Your company’s B2B credit application is a critical tool to help your organization assess the creditworthiness of potential customers, make smarter and better-informed credit decisions, and reduce the risk of future nonpayment.  Far too often, the business credit application is an afterthought – an outdated form developed internally decades ago, a hodgepodge of elements borrowedContinue reading “Five Key Steps to Designing a Bulletproof B2B Credit Application”

What should I do when my B2B credit customer stops paying during an economic downturn?

Tumultuous economic times make proactively managing your B2B accounts receivable portfolio more important – and difficult – than ever.  When a B2B credit customer stops paying during an economic downturn, it is important to take a proactive approach to address the issue.  Here are some steps to consider:: It is important to approach a distressedContinue reading What should I do when my B2B credit customer stops paying during an economic downturn?

Why Should My Organization Move Its B2B Credit Application Online?

The paper credit application has been a staple of the B2B trade credit process for decades, and remains a prevalent means of collecting customers’ credit information today.  However, savvy credit departments are increasingly moving their credit applications – and the entire credit investigation process – online.  Online credit applications simplify the credit investigation process, increaseContinue reading “Why Should My Organization Move Its B2B Credit Application Online?”