Every now and then you come across a best practice in B2B credit and collections that just make so much sense you are surprised that not everyone is doing it. One such practice I have seen lately is setting up an internal collection agency. The concept is pretty simple; you dedicate experienced collection personnel to form [...]
Showing all posts by C.J. Wimley
To Write Off or Not Write Off
I have seen companies write off accounts before they are sent to third party collection agencies, and I have seen companies keep them in the A/R balances until the third party collection agency has exhausted their activities. I think the best approach is to keep them in the A/R balances until the agencies are done. Now this [...]
Collection Risk Modeling and Its Role in Cash Forecasting
Collection risk modeling and its role in cash forecasting was debated this past week at EuroFinance in Monaco during a panel staffed by Joe Prudente Vice President of Worldwide Credit at Future Electronics; Chris Shier, Head of Credit Management at Lafarge UK; and Enrico Camerinelli, senior analyst at the Aite Group. I wrote about the panelist discussion on a [...]
Risk-based Collections Part IV: Collections Prioritization
In Part I of my Risk-based Collections blog series, I described the differences between Judgmental and Statistical Scoring models. In Part II, I discussed which scores are best for managing existing credit lines. In Part III, I described which scores are best for new application credit risk evaluation. In Part IV, the final in the Risk-based [...]
Risk-based Collections Part III: Credit Risk Evaluation for New Applicants
In Part I of my Risk-based Collections blog series, I described the differences between Judgmental and Statistical Scoring models. In Part II, I discussed which scores are best for managing existing credit lines. In Part III, I will describe which scores are best for new application credit risk evaluation. One of the best uses of [...]
Risk-based Collections Part II: Managing Existing Credit Lines
In Part I of my Risk-based Collections blog series, I described the differences between Judgmental and Statistical Scoring models. In part II, I will expand upon the specific uses of these models, in particular managing existing credit lines. For evaluating a request for additional credit or determining the collectability of an existing customer account, statistical-based models [...]
Risk-based Collections Part I: Judgmental Versus Statistical Models
Throughout the years I have worked in credit and collections, either doing credit analysis related to commercial lending decisions or identifying the elements that should be weighed when reviewing trade credit lines. I have seen many different scoring models used for many different purposes including judgmental scoring models that focus on the use of credit [...]
