Credit Managers?

Here are a few ways that customer credit limits established by the credit department can and should be used to help streamline the order release process while helping to control credit risk:

  • Establish a credit line for every active customer, including COD customers. Make certain customers are aware that credit lines can be changed from time to time, with or without advanced notice at the sole discretion of the credit department.
  • Always remember that credit line established for a customer is intended only as a guideline, and should not be used arbitrarily to deny credit to a customer.
  • It is important to update credit files and review credit lines at least once a year and adjust them based on the amount of credit risk associated with doing business with a customer. Major credit lines may need to be reviewed quarterly.
  • Work proactively with sales to determine what credit limit customers will need. Try to qualify customers in advance for higher credit limits. Why? Because it places a serious strain on the business relationship if orders are held by the credit department pending receipt of additional information needed to make an informed decision about whether or not to release the pending order.
  • Don’t rely on personal guarantees to ‘shore up’ a high-risk account when establishing a credit limit. In a worst case scenario both the company and the individual guarantor will file for bankruptcy protection.
  • When establishing a credit limit for a high-risk applicant that is a subsidiary of a low risk parent company, recognize that a parent company normally has no liability for the debts incurred by its subsidiaries.
  • Don’t over-use credit limits. Establishing appropriate credit limits will reduce the number of orders that end up on credit hold.

Category Categories: Financial

Quarterly home repossession figures published

New data published by the Council of Mortgage Lenders (CML) indicates that the number of home repossessions has fallen by 1%, from 9,100 in the first quarter of the year to 9,000 in the second quarter. However, some people in the industry have warned of an “arrears timebomb”, with disaster set to strike when rates rise in 2012.

Compared with the second quarter of 2010, the latest repossession figure represents a 7% fall. At this stage in 2010, there had been 19,500 repossessions, compared with 18,100 so far this year. The number of mortgages in arrears of 1.5% to 2.5% has increased, however.

Paul Smee, director general at CML, said that the stabilisation of mortgage repayment problems could be attributed to “stable employment and low interest rates.” He added that he felt there was no need to revise current forecasts in light of the current uncertainty in the global financial markets.

The Citizens Advice Bureau has reported that it has dealt with over 100,000 cases where people are in mortgage or secured loan arrears, and says that it has prevented 5,000 people from losing their homes in the past year. Gillian Guy, chief executive at the CAB, said: “With the cost of living going up daily and incomes lagging badly behind, mortgage lenders and the government must focus on helping people stay in their homes. Repossession is a terrifying prospect and should always be the last resort.”

If you do fall behind with your mortgage payments, you should always treat them as the top priority before paying back any other debts. Otherwise, you risk losing your home. Always contact your lender if you are expecting to miss a payment, rather than waiting for them to start threatening you with legal action. They may be willing to reduce your monthly payments in some circumstances.

Additionally, you should ensure you are receiving any benefits or tax credits to which you are entitled. The Government also operates a Mortgage Rescue scheme, through which you be able to sell your home but continue living there and paying rent. You can get more information on this from your local council.

If you are struggling to repay unsecured loans, credit cards or overdrafts, we can provide confidential debt advice.

Category Categories: Debt and Loan

Bridge Your Monetary Voids with Short Term Cash Loans

Are you in urgent need of hard cash? If yes, then there is no need of knocking anybody’s door as you can easily and instantly availed required funds through Short Term Cash Loan. You will be approved an amount instantly within hours after completing the loan application. Therefore, the loan amount is transferred in your bank account within 24 hours for its timely use. These short term cash loans are specific loans for and can be use in urgency.

These loans are called short term loans because you are applying for a loan which needs to repay within two weeks. Short term cash loans are based on your next paycheque. You are required to repay the loan amount with interest fee when you get your paycheque. If unable to repay on time, you can easily extend the loan duration by requesting your lender. But this term, borrower has to pay extra fee against the loan.

You can borrow ?100 to ?1000 under short term cash loans. But the loan amount depends on your monthly salary and repayment capacity. Note that short term cash loans are solely based on the verification that the borrower is a regular employee from last six months and gets a fixed salary. That is why the lender approved short term cash loan without collateral and credit check. Some lender may take a post dated cheque from the borrower as security, containing the borrowed amount and interest fees.

However some lender charges very high interest fees and late fee. So you must ensure that you take the loan only in emergency condition. Still, there is a need proper research which might results in fees short term cash loan. Also note that these loans approved without credit checks. This means even bad credit borrowers are given the loan instantly without any credit enquiries. Online application is best way to apply for the loan. For online process, you just need to file an online application form correctly. You might face disapproval in case of wrong or incomplete information. So, be particular about the information.

Category Categories: Debt and Loan