How to Perform a Sound Credit Review

Duration 60 Mins
Level Basic & Intermediate
Webinar ID IQW19C0386

  • Setting up a new account
  • Reviewing whether your credit application is solid enough and if not how to get it there
  • Once credit is given to an account how best to monitor the account
  • If the account is not paying as promised the steps needed to secure a payment
  • If you can get financial information on the customer you will learn what numbers to pull off the financial statements, which ratios to use and how to calculate them
  • Forms of payment will be discussed and an analysis of how to determine which is the most cost effective will be shown

Overview of the webinar

This webinar will cover the entire credit process from how to set up an account, how to decide what payment terms they should receive all the way to how best to collect from a delinquent account. The webinar outlines steps for the following processes:

  • Credit application- what is needed in the body of your credit application so that your company is covered should there be a lawsuit, or the customer goes to collections. What can you ask on your credit application and still be PCI compliant
  • Once the credit application is received what does your team need to do to determine if the customer is credit worthy enough to have open account. If they are not credit worthy enough what are next steps
  • The webinar will also show how to write up an effective credit review with financial information (If available) to present to management for approval on your largest accounts
  • Time will be spent to discuss whether cash in advance is really a good option for a customer that may not look as credit worthy as you may like. We will discuss reports that your IT department can write that will help you monitor your accounts, process credit cards, and determine DSO for each of your accounts
  • The webinar will cover several techniques on how best to collect from your accounts while still retaining them as a customer, when to request help from your sales team and what the final steps should look like before you turn an account over for collection
  • Finally, it will cover how to effectively determine the cost of each of your payment options and this will help you decide which way is the most cost effective way and help lead your customers to using that method. Overall it will cover the credit process from Soup to Nuts to quote the phrase

Who should attend?

Anyone overseeing the credit and collections area :

  • Credit managers
  • Credit analysts
  • Collection specialists

Why should you attend?

Every company must have a process in place for setting up new customers but how are they doing it and is the current process as effective and efficient as it could be? In this session it will cover the best practice for setting up new accounts, how to review their credit applications and question do you need to order a credit report or is there enough information in your credit application and in the manner you do business to avoid the cost of a credit report. If you end up buying a credit report or if you receive financial statements from your largest customers this webinar will teach you what to look for on the financial statements, how to interpret them and make a decision of how to sell to this new account. Other area’s covered are; Learning about the Altman Z score to determine if the new account has the possibility of going into bankruptcy within the next 12 months, how to set up credit limits and how to write up the SOP with a Credit limit matrix to support the credit limit approval process. You will learn how to monitor an account once it is set up, how to do a calling hierarchy for your team and techniques of what to do when your credit team cannot reach the customer to try and secure a payment. The Webinar will also talk about all the payment methods available and how to determine the cost of each and choose which one is best for your company.

Faculty - Mr.Ronald Sereika

Ron has a Bachelor of Science Degree in Accounting and he has completed  the two-year executive credit and finance program as well as the GSCFM international program both at Amos Tuck School of Business at Dartmouth University. Ron was honored to have received the NACM National instructor of the year award in 2010, the National CCE of Excellence award in 2013 and also the Credit executive of the year for Upstate New York in 2011. Ron is a true team player with a positive attitude that believes he will be able to help you reach the same results he has achieved with his presentation. Ron believes that you need to treat your customers as partners, not just people that owe you money.
Mr. Ronald Sereika has over 25 years of experience in management, financial analysis, credit and collections, and customer service. His background includes working in the clothing, food, and beverage, building products and currently the medical device industry; all these have contributed to his broad knowledge of diverse industries, a unique skill set that benefits any size or type of company. 

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