Paul Taylor from Taylored Credit Management delivered this session to a group of senior Credit Control professionals at in-house training in 2018. You need to hear the presentation but here are the slides, get in touch for more information or to arrange training for your Credit Control team.

1. Paul Taylor CMgr FCMI MCICM

2.  Paul Taylor – Chartered Manager & Credit Geek
 Head of Credit & Risk – Top 100 company
 22 years experience spanning various industries
◦ FMCG
◦ Telecommunications
◦ Freight/Logistics
◦ Security/Fire
◦ Retail Operations
◦ Construction
 Fellow of the Association of Credit Professionals
 Fellow of the Chartered Management Institute
 Member of Advisory Council for CICM & VC NI Branch

3.  The Business Dictionary says…
◦ A choice made between alternative courses of action in a
situation of uncertainty.
 Wikipedia says…
◦ … regarded as the cognitive process resulting in the selection
of a belief or a course of action among several alternative
possibilities.
 Dictionary.com says…
◦ The act or process of deciding; determination, as of a question
or doubt, by making a judgement:…

4. What type of decisions do you
find hard to make?

5.  Customer trading since 31st July 2001
 Usually pays on time / <30 days
 Requested more time to pay Sept A/C
 Premises being renovated
 Do we supply?
Scenario 1

6.  Customer has 2 accounts
 1 TO £13k pa @ 10% margin
 2 TO £36k pa @ 8%
 1 pays within terms
 2 is always late
 Do we stop 2?
Scenario 2

7. Write down the factors to consider
when making:
• Risk/Credit decisions
• Commercial Decisions

8. Risk / Credit decision Commercial decision
Payment Performance
Agency Credit Score
Agency Credit Limit
Payment method
Payment terms
Returned payments
Previous outlet performance
Trade reference(s)
-
Length of time trading
Volume of sales
Value of sales / Margin
Risk vs. reward
Reps knowledge
Sales growth / Appetite
-

10.  Your mood
 Your emotions
 Past experience
 Time/workload
 Sleep/being tired
 Cognitive biases OR Overthinking
◦ Belief
◦ Hindsight / Reluctance
◦ Omission / Inclusion

11.  3 C’s apply equally to New & Existing accounts
◦ Collateral
◦ Capacity
◦ Character
◦ 4th, quite unique
Do they have assets to realise in a debt situation?
Do they have the liquid funds to pay?
Are they likely to want to pay if they can?
– Controlled Greed