In Focus – CMO Cash Flow Fulfilment
Interview with Pascal Walsh
What is the main service that CMO Credit Management provides for its customers?
Well, our company provides two major services to ensure customers can get the maximum return. The first is credit vetting and evaluation.
At CMO, we will go through a company’s credit history to ascertain as to the credit worthiness of said company. It’s important for us to conduct a detailed analysis so as to apply a correct rating for the company.
These credit checks are vital to a company’s survival and we would recommend that all company’s get regular checks done. Some places can often bury their heads in the sand as to the state of their company’s finances but we, at CMO, would urge all businesses to get a credit evaluation every six months, just to keep on top of things.
And the second?
Secondly, we deal with recovery. This part of the company deals with any debt owed by one business to another, as we operate in the B2B market. In the current climate we are in, there are a lot of SME’s willing to let their credit period run up and up and even go elsewhere to get more credit.
Many of these businesses don’t address their credit problem until the debt is almost delinquent. Many of these businesses are in denial are highly reluctant to deal with the credit issues in hand. This leads to damaged relations between the parties and even embarrassment amongst the parties. Interest charged on any outstanding debt will continue to rise and the problem can escalate.
Even when the creditor comes to us to help resolve the issue, we have to assure them that we can normally only recover 40% of the debt on average due to a wide variety of reasons.
Is there anything you would advise to our QBA members?
We would encourage all businesses not to let their credit get beyond a 90-day period (unless otherwise stipulated). If for unforeseen reasons, it does go beyond this time limit, the company should be proactive and actively address the problem as soon as possible. This shows a willingness to sort out the debt and maintains a cordial working relationship. Clear, early signs of reparation can go a long way to resolution.
We would also encourage businesses to have a credit policy, a procedure to go through on a regular to ensure that they stay on top of things. If there is a problem, address it, don’t just hope it will go away.
Is there any special offer you have for QBA members?
Any QBA member that requires our services here at CMO, will receive a 20% discounted rate based on the rates that appear in the brochure they receive upon enquiry.