are You looking for an experienced CREDIT MANAGER?

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Why Clients Choose Hummingbird

Over 30 years' experience in credit management

“I wouldn’t hesitate to recommend Kim, as somebody you can parachute into a credit function, and can add value straight away.  Kim helped us to train & mentor, a newly appointed credit manager, and instantly helped the team to put good processes in place, and start really getting stuck into the query resolution, and bringing in cash from our aged debt, in a manner that was sensitive to our culture and customer relationships.”

Henry Pepperall
Chief Financial Officer – Exponential E

Our Steps to Successful Credit Management

initial consultation

In order to establish exactly what you require, it is important to discuss the current situation with your sales ledger/aged debt.  Areas covered will include your existing processes, what is working and what might need attention.  Together we can formulate a plan to tackle the areas which are causing a delay in payments.

This is an opportunity for you to explain what requirement you have and how we can improve your cash flow.  I will need to understand how your business works, discuss credit limits, payment terms and talk about your company’s culture.  This will enable me to provide a bespoke, tailored service suited to your needs at a time convenient for you.

How we Work

Data Collection

The key to successful CM is communication, not only with your clients but also within your own business.  Implementing robust processes to control both the order to cash and query resolution are vital to ensure payment is made promptly and as due.  Staying close to your customer and understanding their business will enable you to also be flexible with them and maintain a successful ongoing relationship.

A health check will normally take between 3 and 4 hours working with all areas of the business to establish the current working practice.  Dependent on the size and nature of the business typical areas covered will include:

  • Document trail ie invoices, statements, RMA’s,
  • Credit Policy/Terms & Conditions
  • Collection process/timing
  • Setting credit limits and credit checking
  • Relationships with key areas of the business (sales, finance, operations)
  • Query resolution management
  • Delegation of Authority
  • Escalation process
How we Work

Sales Ledger Analysis

Remember, your oldest and largest debts must always be your priority.  Applying the Pareto rule, it is easy to prioritise where the emphasis will lie.  Ideally post a health check, all the areas covered will enable me to carry out hands on Credit Control.  By tackling difficult or aged debts first you will begin the process of bringing the aged debt up to date.  By concentrating on these items you can uncover the areas causing concern and which require attention going forward.

Invariably the 3 reasons for non-payment are

  • No desire to pay
  • Inability to pay
  • Unresolved query

Once the reason has been established you can begin to unravel the problem and resolve it.  Communication is always key so an initial call is made to the customer to find out why they are withholding payment.  Sometimes it can just be locating the right person who is in a position to authorise the payment.

By consistent, effective credit management your cash flow will improve and your customers satisfaction will increase.

How we Work

Credit Checking Policy

Credit checking your customers should always be part of the sales process.  This information is key in understanding the solvency of the company you wish to do business with. If you have access to an on-line provider you can also credit check your suppliers, a worthwhile exercise if you intend to releasing your cash to them for goods or services.

Using an on-line credit check service, I can run a report to credit check your existing database. From this information you can at a glance see if your existing customers are solvent.  From this data we can establish where there may be weaknesses in the portfolio and ensure the existing credit limit is set appropriately.

How we Work