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What are your biggest business problems?

POOR CASH FLOW?

BAD DEBT?

FEAR OF NOT BEING PAID?

LACKLUSTRE CREDIT AND COLLECTIONS PROCESS?

GETTING PAID AND KEEPING THE CUSTOMER?

STRESSED AND NOT SURE WHAT TO DO?

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What are your biggest business problems?

POOR CASH FLOW?

BAD DEBT?

FEAR OF NOT BEING PAID?

LACKLUSTRE CREDIT & COLLECTIONS PROCESS?

GETTING PAID & KEEPING THE CUSTOMER?

STRESSED & NOT SURE WHAT TO DO?

Then we can help you!!

At BDM Credit Management, we specialise in Accounts Receivable, Credit Management, and Debtor Management strategies that become an integral part of your business.

We remove the stress of unpaid accounts and demystify the process of the management of YOUR debtors. It is our mission to enable you to make the most of the opportunities that a strong cash flow will bring.

We achieve this by offering our Outsourcing Services (we do it for you) or our Assessment, Analysis and Implementation and Support services. (Working out what you do, what you need, offering the solution, and ALWAYS supporting your team every step of the way.)

When you engage BDM Credit Management, you free yourself and your team to do what you do best – growing and building your business.

BDM Credit Management – Get paid, stress less AND keep your clients.

How we can help your business?

If your business is profitable, but is short on cash, then cash flow is your priority. It is usually a sign that your outstanding Accounts Receivables have increased significantly, perhaps you are offering extended terms to your customers, but more than likely, your customers are taking longer to pay and need to be brought back to agreed terms.
It is worth remembering that Cash is not given. It does not arrive in your bank account willingly. It must be tracked, chased and captured. This process needs to be controlled within a relevant Credit Policy that is tailored to your business and your needs.

Having a strong Cash Flow is the result of consistent debtor contact as well as establishing and maintaining positive relationships with your debtors.

If your business makes 15% profit on sales, a bad debt of $15,000 wipes out the effort of $100,000 of sales.There are usually tell-tale signs or ‘red flags’ that your customers may be experiencing difficulty… and usually it is a gradual process.By being in regular contact with your customer’s Accounts Payable department each week, we will be able to identify those customers that are posing a higher risk to your business.

We can then work together on how best to assist your customer and maintain their business while keeping your risk to a minimum, and you will see a reduction in bad debts as a result.

Knowledge is Power. We take note of when customers pay, when they close off for the month, what their processes are (if any) and work with them to obtain your payment for you.

We can also identify the clients who are struggling to pay on time.  This can allow more dialogue to understand their issues, so that you can make informed decisions regarding future trade.

You will receive regular reports which will highlight any concerns that we may have, as well as document the contact we have made with your debtors.

When your customer is contacted for payment, that contact must be considered as yet another opportunity to offer good customer service.  It is important that your customer has a positive experience. (Yes, even when being asked for payment).

This has a number of benefits, not only will they pay you before other suppliers, but their opinion of your business will also grow.  It builds trust, respect and more importantly the relationship between both parties.

It is a fact that many business owners really struggle with trying to ‘wear both sales and accounts hats’ at the same time.   Contacting your customer to advise of a new product or promotion coming up AND then having to ask for that overdue account at the same time….  No-one EVER wants to have to do that.

A client of ours recently told us said that since we began managing his debtors, his clients are now answering the phone when he calls them. Why? Because they know he isn’t ringing them to ask for money. (As that is what WE do) Surprisingly, this has resulted in increased sales as his clients will now call him or visit him at his office to chat about prospective tenders and other large orders, comfortable that there will be no discussion regarding payment of their account.

You can have every confidence that your customers will appreciate our approach, as we believe your customers are just as important as ours.

BDM Credit Management – Get paid, stress less AND keep your clients.

Not many people realise that there is legislation - rules and regulations - which apply to the collection of monies owed. We know all about them - so you don’t have to. We work within these rules to maintain compliance at all times.

  • Competition and Consumer Act (previously the Trade Practices Act)
    • Contains all of the guidelines in regards to the collection of accounts.  Includes customer contact, harassment, record keeping etc.
  • Personal Properties Securities Act (PPSA)
    • This gives you the opportunity to retain ownership and have security over your goods until all debts are paid
    • Simply having a Retention of Title clause in your terms and conditions is no longer sufficient.
  • Changes to the Privacy Act.
    • Changes came into effect in March 2014 which included a new set of principles around how personal and private information is collected and stored and used.
    • Your business might need to change your credit application process, your Privacy Policies and more

One of the most important documents within a business, is the Credit Policy.

It documents your minimum standards or requirements of what you want and need to happen in relation to your debtors. It will include all aspects of the tasks and responsibilities of your credit team.  It will include your terms, when you will place accounts on hold, when customer contact commences, when legal action should be required etc.

It ensures that all staff within your business are aware of the rules of supply to your customers.

It is an internal document that will never be seen by your customers, but it will affect the way they trade with you.  It must be relevant for YOUR business and what you want to achieve.

We have seen some otherwise healthy businesses that just didn’t have this fundamental document in place, and they experienced a range of issues – slow payment timing, cash flow problems, poor customer service, low morale within the credit team, poor selection of customers, and more - simply because the structure is not in place.

Sadly, the same can be said for many businesses, and as the business grows, the problems get worse.

It is never about just picking up the phone or sending an email… what is it that you want to achieve from the contact with your customer?  (apart from getting paid of course!).

Strategy must be considered as part of the collection process – there are always a number of different decisions that can be made when collecting an account.

And what happens if the debt needs to be escalated - how will you go about this, what will the tone of the communication be – how will the customer likely react.

Some customers will respond well to a conversation, others to written requests, you need to have a selection of strategies in place to enable you to find the right way to approach your customers for payment.

We can assist you with working on the strategies that will suit your customers and your business.

Credit Management, Debtor Management, Accounts Receivable - whatever you want to call it – is a specialised field that can have a huge impact on your business.

Quite often, we see credit officers that have not had the appropriate training or the opportunity to learn from an experienced Credit Manager.

It is important that the person responsible for the collection and management of your debtors has the tools and support to achieve the best possible results.

We can offer onsite training for your staff as well as ongoing mentoring and support.

When you are spending precious time and effort focussing on your overdue accounts, or on the policies and processes that just aren’t working for you - it takes you away from what you do best.  Let’s face it, your expertise is needed elsewhere in your business.

Allow us to use our expertise and experience where we can help you the most – to get paid, stress less and keep your clients.