BestPracticeOverviewStrategyAreallcreditandcollectionsdoneattheBOlevel?Isthereoneclearperson/departmentwhoisresponsibleforcreditandcollections?ROIDrivenCollections/ProfitMaximizationCollectionservicesandprocessesaredesignedsothatcustomerreceivablerecoveryratesaremeasuredandproactivelyimproved.Inboundandoutboundcustomerinteractionsarealsomatchedtocustomersegmentssothatpaymentbehaviorsandmarginsarealsoenhanced.Doyouhaveaclearlydefinedstrategyforcreditandcollections?Whatisthedollarvalueofoverduedebtatanyonetime.Ifforexample,inaonemonthperiodyoubillonemillionyuen,whatamountwouldbepaidlatetypically?WhatpercentageofARarenotpaidontimeattheendofamonth?Whatisthedollarvalueofdebtthatyouwriteoffeachyear?Doyoureportoncreditandcollectionsperformance?Forexample.Costtorecovereach$1?Dollarsbymonthlyold?Areyouabletodoatwillanalysiseasily-forexamplereportingtheageddebtors?ProcessCollectionActivityPrioritizationReceivablerecoverystrategiesaretargetedtowardscustomersthatdemonstrate"abilitytopay"andflexiblepaymentoptionsareprovidedtoallcustomersbuthighlyencouragedforthosedemonstrating"inabilitytopay".Arethereclearprioritiesforcreditandcollectionsprocedures?Forexample,usingtheavailablestafftofocusonthosecustomerswhoaremostable(andthereforelikely)topay?CashManagement/TreasureCashmanagement(treasury)functionsareusedtoforecastthecashpositiontoenableplanningforshortterminvestments.Doyouutilisecashmanagementandtreasuryfunctionstoforecastyourcashposition(basedondebitorsandcreditorsexpectedpayments)?IsthecashmanagementfunctionintegratedwithAR?CallHandlingStandardizedcallhandlingprocessesandprocedures,includingscriptsthatestablishexpectations.Thishaslargelybeencoveredinthecustomerservicesection;furtherthough,doescreditandcollectionshaveactiveinputtothetrainingandscriptsusedbytheCSRs?CreditScore/PositiveIdentificationVerificationofcustomeridentityandpaymentbehavior(past12-18months)viasocialsecuritynumberand/orcreditscoreassessment.Identifiescreditrisktominimizefraudandfutureskiptracingcosts.Doyoumaintainakeyformofidentificationforeachcustomer-forexampleIDcardnumber?ISitmandatorytocollectsuchinformationatmovein?Whenacustomermovesfromonepremisetothenext,istheirmasterdatamaintained?Or,isthecustomermasterdatacreatedagaineachtimeacustomermovesintoaproperty?Doesthecustomer'sdebtremainontheonecustomeraccountastheymovefromonepremisetothenext?Doesitaccumulateontheoneaccount?Doyoucollectsecuritydeposits?Whereacustomerhasmultipleproperties,doesthecustomerexistonceperproperty?Or,istherejustoneconsolidatedaccount?Ifthecustomerhasadifferentaccountforeachproperty,isthereawaytoviewtheconsolidateddebtacrosstheproperties?Doyoumaintaincreditprofilesforcustomers,basedontheircustomertypeandtransactionhistory?Ifso,isthecreditprofileupdatedautomaticallyforeventssuchaslatepayment,writeoff….Isthedeterminationofthecreditprofileaffectedbythecustomersegmentation?Thatis,largercustomersareweighteddifferentlytosmallercustomers?Arecreditandcollectionsactionsdriveninpartbasedonthiscreditprofile?SecurityDeposits/CreditCardCollectionofsecuritydepositsandorcreditcardinformationwhencreditscoreorpastpaymenthistoryshowssignificantcreditrisk.Advanced:dosowithexistingaccounts,aswell.Doesthecreditprofileremainwiththecusomteracrossmoveins/moveouts?Doesitoperateacrossmultiplepremises?Arethedepsitscollectedatmovein?Isthesecuritydepositamountde...
