When decisions are framed within the collection policies, and specifically in the management, we must bear in mind the following:
2.1. CUSTOMER CLASICACION
Customers can be classified from the point of view of the collection, within the following groups:
a) Customers who misrepresent the terms of payment.
b) Customers who neglected due dates because of lower stocks.
c) Client overlooking their debts, negligence or poor work methods.
d) Customers usually are delayed for personal or business reasons, but they pay within the limits that they put the company.
e) Customers who are always behind.
f) Customers can pay on time, but neglect the due dates because they think it is more profitable for them, using money from the creditor that his own money.
g) Customers who are on the verge of insolvency or actually insolvent.
h) Customers who deliberately commit fraud.
Management of customer information and your debts must be taken very carefully, very accurately in full and current, so that a detailed inspection shed as a result the client's behavior towards the firm.
2.2. AVAILABLE CAPITAL
If the company provides credit is operating within a limited capital structure, will be forced to adopt stricter collection policies, in order to remain in a position to pay its debts shortened term. The experience enables us to advise that payment of these customers can be very slow if no appropriate measures are taken, and that this attitude could jeopardize the financial stability of the company.
If the creditor is not a covered loan with collateral the collection can be classified as high risk.
2.3. COMPETITION
trading company that plans to sell their goods on credit, must take account of actions taken its competitors, as these actions can have a major influence on their charging policies.
therefore be necessary to improve the collection by using new methods and other forms of payment according to what is currently on the market, and further, learn, access and evaluate the techniques in which competition works on collections.
2.4. TYPE OF BUSINESS AND MERCHANDISE
The methods and collection practices tend to vary in the type of business or activity carried out by the company and method of operation, the type of merchandise it sells.
Thus for example the collection conditions will be different for bread products staple wear or for those oriented to the culture, recreation or entertainment, including in them the white goods or brown, or luxuries such as a gold watch, a luxury car or leisure travel to different parts of the world.
2.5. The profit margin
The broad margin of profit, has a significant influence on the collection policies implemented. The wider profit margin with which the company operates, will be more lenient collection policies, such longer terms of payment, by contrast, reduced margins will not allow delays in payment and collection procedures expensive, such very short time.
2.6. CREDIT POLICY
credit policies made by the company, affecting the liberal tendencies, they can match the competition or the economic environment. That in many cases can be restrictive or speculative, but should not be forgotten that the purpose of the credit is to encourage sales of the collection and will minimize the risk and provide adequate liquidity to maintain financial health of the company.
2.7. COMMUNICATIONS, RECORDS AND CONTROL
The registration and control methods being used have a direct effect on the collection policies because it is very important to have all the logistical support as to the timely delivery of all documents and formats for information to flow quickly. The modern use of communications should be available to the Department of Collections for that it may carry out its work efficiently.
2.1. CUSTOMER CLASICACION
Customers can be classified from the point of view of the collection, within the following groups:
a) Customers who misrepresent the terms of payment.
b) Customers who neglected due dates because of lower stocks.
c) Client overlooking their debts, negligence or poor work methods.
d) Customers usually are delayed for personal or business reasons, but they pay within the limits that they put the company.
e) Customers who are always behind.
f) Customers can pay on time, but neglect the due dates because they think it is more profitable for them, using money from the creditor that his own money.
g) Customers who are on the verge of insolvency or actually insolvent.
h) Customers who deliberately commit fraud.
Management of customer information and your debts must be taken very carefully, very accurately in full and current, so that a detailed inspection shed as a result the client's behavior towards the firm.
2.2. AVAILABLE CAPITAL
If the company provides credit is operating within a limited capital structure, will be forced to adopt stricter collection policies, in order to remain in a position to pay its debts shortened term. The experience enables us to advise that payment of these customers can be very slow if no appropriate measures are taken, and that this attitude could jeopardize the financial stability of the company.
If the creditor is not a covered loan with collateral the collection can be classified as high risk.
2.3. COMPETITION
trading company that plans to sell their goods on credit, must take account of actions taken its competitors, as these actions can have a major influence on their charging policies.
therefore be necessary to improve the collection by using new methods and other forms of payment according to what is currently on the market, and further, learn, access and evaluate the techniques in which competition works on collections.
2.4. TYPE OF BUSINESS AND MERCHANDISE
The methods and collection practices tend to vary in the type of business or activity carried out by the company and method of operation, the type of merchandise it sells.
Thus for example the collection conditions will be different for bread products staple wear or for those oriented to the culture, recreation or entertainment, including in them the white goods or brown, or luxuries such as a gold watch, a luxury car or leisure travel to different parts of the world.
2.5. The profit margin
The broad margin of profit, has a significant influence on the collection policies implemented. The wider profit margin with which the company operates, will be more lenient collection policies, such longer terms of payment, by contrast, reduced margins will not allow delays in payment and collection procedures expensive, such very short time.
2.6. CREDIT POLICY
credit policies made by the company, affecting the liberal tendencies, they can match the competition or the economic environment. That in many cases can be restrictive or speculative, but should not be forgotten that the purpose of the credit is to encourage sales of the collection and will minimize the risk and provide adequate liquidity to maintain financial health of the company.
2.7. COMMUNICATIONS, RECORDS AND CONTROL
The registration and control methods being used have a direct effect on the collection policies because it is very important to have all the logistical support as to the timely delivery of all documents and formats for information to flow quickly. The modern use of communications should be available to the Department of Collections for that it may carry out its work efficiently.
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