Duncan Grubb
Consultants
Reducing financial risk for landlords and suppliers.
Credit Management v Debt Recovery Process vs Remedy
Many people confuse Credit Management with Debt Recovery, however simply put, Credit Management is a process, and Debt Recovery is a remedy.
​
Credit management is a suite of procedures designed to prevent payment problems occurring in the first place, and debt recovery is a separate set of procedures for dealing with situations where credit management hasn’t worked, and where problems need to be rectified swiftly.
An organisation wide Credit Policy is a valuable tool for the Senior Management, Sales, and Finance departments of any trading operation, providing exposure limits which are financially justifiable, and risk prevention procedures which are simple and effective, all of which can be implemented across the entire business.
Managing the income flow from your tenants or customers will always cost some money, however it is far better to spend a little on up front analysis and risk prevention, than to forfeit larger amounts when tenants default on payments and / or become insolvent.
With an effective Credit Management system in place to anticipate possible problems, the remedy of debt recovery can become unnecessary, yet many businesses still fail to see the benefits of proper risk prevention, and simply hope for the best in their commercial dealings.
Who am I and why should you bother contacting me?
I have spent 35 years in senior positions in the credit industry, during which time I have developed and successfully applied a set of procedures to various business sectors including manufacturing, commodity trading, freight and shipping, wholesale and property – most recently as Head of Credit for a leading FTSE100 Property Group. These procedures provide a cost effective, cradle to grave approach to income stream management.
​
From the initial evaluation of a potential tenant or customer’s financial status, including bespoke recommendations for security and default prevention, to the monitoring and highlighting of financial and critical information, my system can significantly reduce financial risk for landlords and suppliers, and ultimately prevent losses.