With UK corporate profitability at its lowest ebb
according to Experian, business methods and
changing constantly, and global competition increasing
all the time – doing business in the 21st century is
tougher than ever before and only the very fittest will survive.
In this ever-changing environment, companies are looking
at new ways of increasing their profits and making their
money work as hard as possible for them. Trade debts can
often account for as much as 40 per cent of a company’s
assets, and British businesses spend in excess of £12 billion
a year on credit management. Yet the credit management
function is still usually tucked away and not considered
an important part of the business strategy.
The spotlight, however, is starting to turn on credit and
its role within the organisation, and smarter
thinking about how to use it more effectively to boost their
bottom line and increase their sales. But it’s not just about
tightening up credit management procedures to keep the
cash flowing and improve profitability. It’s also about
turning the traditional view of credit on its head,
and starting to view it as a positive, profit-driving, sales
support rather than a risk-averse accounting function.
It was with this in mind that we invited American credit
management guru Abe WalkingBear Sanchez to address
our seminar. Abe is the creator of the profit-centred
and collection movement in the States, and is renowned
for his vision, challenging views and energetic style.
He certainly did not disappoint at the seminar, and this
report outlines some of the ideas and systems that he
covered at the event.
Director, UK & Ireland