Data, scores, and A/R provided sufficient warning and reason for vendors to monitor transactions and outstanding balances with H. Brooks and Company, LLC, New Brighton, MN more closely.
Every year, this Blueprints department discusses a company that closed its doors during the prior year. Our objective is to see if we, as credit extenders, can learn from the company’s decline or help reinforce processes to minimize the impact. For those who were on the short end, this case study will perhaps provide hindsight and lead to more proactive steps when the next customer begins to fail, because it will happen.
Part of the equation when considering a payment plan is a solid relationship with the customer and to ensure the plan doesn’t breach PACA trust rights. A commitment to work together will also strengthen this bond.
Charles Brown, director of credit for Hapco Farms, LLC, a grower and importer in Westhampton Beach, NY, considers accounts receivable or A/R as the biggest entry on any company’s balance sheet.
The salesperson’s new candidate for credit survived scrutiny, and its finances look good on paper.
Every credit department needs standards for setting credit and payment terms, and for what happens when payments arrive late.
The credit department holds the key to a company’s revenue.
The right mix of customer accounts, of course, will be different for every type of business.
The idiom “don’t put all your eggs in one basket” is normally attributed to Miguel de Cervantes, author of Don Quixote. This phrase also represents good advice to follow in business.