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Our Subscribers Say...
I think Credit Today is fantastic. You cover many practical topics in the credit field that I use regularly. Just one recent example—a conversation on the ListServ about preferential payments—gave me tips that I used in an actual case. The specific information I picked up from this one discussion saved me $10,000, enough to cover my membership for many years!
- Steve Savino
Manager of Credit & Collections, ASSA Abloy Americas Division, New Haven, CT
Credit Today's Resource Directory and their online e-mail forum (ListServ) provide information on almost any credit-related topic you can think of. It is a great way to exchange information with other credit professionals. As the saying goes, "You don't know what you don't know."
- Scott Goen,
Credit Manager, Big Lots Stores, Inc., Wholesale Division
"We've recently started using the ListServ tool within Credit Today. This is phenomenal and powerful forum for gaining immediate feedback, ideas, and suggestions, relative to any credit topic under the sun, all in a real-time e-mail format."
-Javier Vela, Senior Credit Manager, Global Credit Services, JDA Software Group Inc.
"Being a part of the Credit Today online community is like having the expertise of hundreds of credit managers at your fingertips. These credit execs are willing to help you solve topical business issues as they arise. In the current environment of ever increasing competing priorities which reduce our opportunities to meet peers out of the office face-to-face, this is the most valuable tool you can have on your desktop! It's important that we have a mechanism to reach out to our counterparts quickly to exchange knowledge as well as to stay on top of industry trends."
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The Credit Today ListServ has become the pre-imminent online forum, providing an opportunity for discussion and comments (and occasional humor) from an impressive list of credit professionals."
David Dungan, Director of Credit
Justin Brands, Inc. (A Berkshire Hathaway company)
Fort Worth, Texas
"There are numerous credit periodicals available to the credit professional today. How good is Credit Today? Is it relevant? I always have to read it late, or online because my credit analysts want to read it the minute it comes in. When my staff wants to read a publication before I have a chance to read it then something is working in that publication. We have cancelled our other subscriptions. When you have the best you do not need the rest."
Ron Woods
Corporate Credit Manager-World Wide
Thales Navigation, Inc.
"The newsletter, coupled with the website and the ListServ, are to us, more valuable than any other credit publication, bar none. I try to use at least one article out of each newsletter for departmental training/discussion sessions."
D. Mark Constantine
Corporate Credit Mgr
Fulton Paper Company
"I love Credit Today and read every issue cover to cover. For me, the greatest perk of a subscription is ListServ. I believe Credit Today's ListServ members may be the most knowledgeable Credit brain trust in existence today. I have saved and categorized hundreds of contributions on a wide variety of topics which I refer to often. It's an easy and cost effective way to network and learn."
Doug M. Thomas
Kimberly-Clark Customer Financial Services |
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Setting a Reasonable Credit Limit
The following article originally appeared in the October 2009 issue of ABC-Amega's free client newsletter, "Credit-to-Cash Advisor". Once you've determined that a prospective customer is creditworthy, how do you determine a reasonable initial credit limit based on the information you've gathered about the buyer? There are three credit limit calculations that can help you determine an amount that is both fair and appropriate: 1. Net Worth Calculation: Utilizing this calculation to assess a credit limit is in your best interest because it limits your exposure, that is, the amount you have "invested" in the customer. Calculate Net Worth by subtracting Total Liabilities from Total Assets. Both figures are found on the company's Balance Sheet. The credit limited is then based on a percentage of the customer's Net Worth. A good rule of thumb is to limit your initial credit offer to 10% of the buyer's net worth. If you prefer, you can offer 10% of his working capital, or 10% of his average monthly sales. 2. Trade Reference Calculation: This calculation can be used to establish a credit limit comparable to what other creditors and/or competitors have granted. Calculate the median credit limit based on the credit limits offered by other creditors. If you are unable to determine these credit limits, use the buyer's recent high credit figures. These should be available on independent credit reports and by contacting the buyer's trade references. 3. Needs-Based Calculation: This calculation favors buyers and is based on providing them with a credit limit that will meet their needs relative to the terms granted. It amounts to simply giving the customer what he says he needs in the way of credit facilities.
Suggested Approach: Apply each of the three calculations to the buyer and then take an average. This should come fairly close to providing a reasonable credit limit. You can then decide to raise or lower the limit based on any previous experience with the buyer, credit and trade references from other sources, suits or liens against the company, age of the financial information, and the current economic conditions in the buyer's industry and country. Note: Once you establish a credit limit, don't treat it as if it were written in stone. You should consistently monitor the customer and, based on changing conditions and your ongoing experience, adjust the limit as necessary. We thank ABC-Amega Inc. for the above information, which was originally published in their client newsletter "Credit-to-Cash Advisor". ABC-Amega Inc. provides 1st and 3rd party commercial collection services since 1929, and collecting in more than 200 countries worldwide. For further information, contact info@abc-amega.com. Disclaimer: This information is provided by ABC-Amega Inc. for informational purposes only and is not intended to be legal advice and is not a substitute for competent legal advice on the referenced subject.
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Credit Groups 2012
Wonder What the ROI is on Credit Groups?
Find out here...
It's been 4 years since our original ground-breaking survey on credit groups and we're revisiting this most important topic. Among other topics, we're investigating:
- What are the top services being offered by credit groups
- How much credit groups cost
- What the value of credit group services is
- What the value of credit group services is in comparison to credit reporting services
- How data is submitted
- What percentage of credit groups reveal terms
- What percentage of credit groups share data outside the credit group
And much more...
Click here to participate!
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