There are a few essential goals that every credit department must take within a company structure.
The obvious few are the reduction of bad debt and the increase of timely payments by new and current customers. And lousy debt plagues all companies from large to small.
There are several steps that the credit department needs to implement with the sales staff to reduce the occurrence of bad debt.
Securing the personal guarantee or letters of credit and sending and filing preliminary notices and liens are just a few tools. That construction industry business can use to mitigate the chance for bad debt.
The credit department’s other goals include stream-lined payment and billing processes making it easier for clients to pay and pay in a timely. It can be helped by automating client reminders to pay when the debt is the past due.