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16 Mar 2010
The credit squeeze has seen a reduction in the amount banks lend, the amount of trade insurance cover from credit insurers, and yes, I now have to admit, a decrease in the credit amounts Graydon offers in its credit reports.
I saw some analysis yesterday showing that between december 2007 and now, Graydon has wiped off around 2 billion pounds from our credit recommendations on Limited companies in the UK database.
But all this information doesn't necessarily mean that the credit crunch equals a retraction in business. Some businessess are finding ways to trade out of the recession and grow at the same time by selling more to the right companies.
One of our clients in the stationery trade was telling me the other day about their tactics. Basically, they used a portfolio management tool from Graydon called e-patrol and matched all their customer credit limits from their sales ledger against all the credit recommendations Graydon has on the same buyers. Where there was an obvious gap between the two, particularly on all the low risk companies( as defined by Graydon), they automatically raised their customer credit limits and informed their customers accordingly.The result?.............................................................a very positive reaction from some happy customers who started taking advantage of the higher credit lines. Where there's a will there's a way!!
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Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment
Howdy I've also just commenced putting together a site also and would be thankful for any tips you might have ...
Posted by: Domain Register Canada, 17 Mar 2010 | 03:48
Did the customers buy more or did they just stop paying on time?
Posted by: Anonymous, 17 Mar 2010 | 11:48
Hello anonymous,
according to the client ,some customers responded by placing larger orders, and as they had good credit histories of paying on time, it didn't surprise anyone when they continued to pay promptly.
Posted by: martin.williams@graydon.co.uk, 17 Mar 2010 | 16:30
But why did your customer have low credit limits on these customers. Surely if there is insurance at a higher level then the limits would be raised to match.
It only makes sense if you are selling the tool without the insurance.
Posted by: Anonymous, 18 Mar 2010 | 15:37
Graydon doesn't sell insurance- we're a credit reference agency so you're right!
Posted by: martin williams, 19 Mar 2010 | 15:02
It all boils down to if you know how to manage your prospects then you will be successful. Just think about it like this, you're panning for gold so you put all your leads into the pan then you systematically shake off all the junk until you find the gold.
Posted by: LiveLeads, 06 Apr 2010 | 02:35
When it comes down to it I think Alec Baldwin said it best in the Glenn-Garry movie. A.I.D.A attention, interest, decision and action. I'll spare you guys the full speech where he cusses everyone out.
Posted by: LiveTransfers, 09 Apr 2010 | 01:18
Wow, Awesome post -
ARE YOU SELLING ENOUGH TO THE RIGHT COMPANIES? - Risky Business
was a great read. I'm such a newbie when it comes to all this, Thanks for this!
Posted by: Stacy Apple, 27 Apr 2010 | 00:54
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. If possible, as you gain expertise, would you mind updating your blog with more information? It is extremely helpful for me.
Posted by: Ivory Gotchy, 25 Jul 2010 | 01:44