President's Msg

Message From President

As a Dun & Bradstreet adjunct instructor for more than 20 years, I have shared with hundreds of course attendees that their mission and goal of credit management within their company can be summarised as :






Highest possible debts will entails working closely with sales team, using effective credit evaluation methods, processes, including street-wise approach in understanding debtors, getting to KNOW them very well, in order to minimise credit risks and achieve the highest possible sales on credit terms.

Shortest possible time will mean fast and effective professional collection efforts, thus reducing carrying costs of Accounts Receivables and minimising bad debts.

To guard against unforeseen bad debts, a comprehensive credit management policy and procedures may incorporate a credit insurance program. Besides offering protection against bad debts, credit insurance can increase sales volume multiple folds. Financing is increased by the securitization of current receivables as assets.

Not many credit practitioners give temporary limited credit terms but I have experienced working in a company that does that. The underlying principle of this practice is that businesses do not close down overnight, only cheats and fly-by-night operators do that. Hence, in order to secure sales, the owner of that company was willing to take on more risky debtors on strictly 7 days credit terms. Upon violation of the credit terms, strong and swift debt collection actions would be taken against the debtor immediately.

In the tourism & hospitality Industry, more risky debtors such as travel agencies, have to be managed by exception as credit terms cannot be given based on their financials. Many hotels give large amount of credit to longstanding large travel agencies, sometimes in the millions of dollars. Their credit practitioners establish informal credit bureaus to share credit information; what Dun & Bradstreet USA Credit Reports will indicate - Paydek information - to monitor and manage their debtors.

Singapore Association of Credit Management is a platform for credit professionals and finance executives to learn from each other, share best practices, learn non-litigation and litigation for debt recoveries. Within SACM there are net-working and career development opportunities. Join SACM and enjoy the benefits of being member of a professional community.

George Goh
SACM President, May 2019