Your business has many assets, such as physical items, maybe your building, equipment, items you stock, key employees, your customers and your credit functions. Many business owners don’t look at their credit functions as an asset, but your credit functions are one of the most important assets your business has. Assets are economic resources owned by a business. Anything tangible or intangible that your business owns is an asset, assets are things of value that can be easily converted into cash and cash is considered an asset.
Your credit functions should be involved in the segmentation, targeting and positioning of your business. Ask yourself, what is the objective of my business and is my credit policy in line with those objectives or with corporate objectives? Segmenting, targeting and positioning help your business to know your customers better and focus on those customers needs in your target market resulting in long-term customer relationships and therefore more sales at less cost.
Michelle Dunn, author of the Ultimate Credit & Collections Handbook, the check IS in the mail available NOW!
