Last time we talked about how credit policies are like a plant grown from a seed. They need regular review and attention just like the plants in your garden to really bloom.

 A credit policy is simply a consistent guideline to follow when decisioning accounts, reviewing accounts, collecting and setting terms.

 Opening accounts is just the first step. Here are a couple of key items to consider in reviewing  accounts:

 How many of your approved accounts are paying you late?

• What is their average days beyond terms?
• How much credit have they been extended?
• What attributes of these late paying accounts can predict future payment behavior?

 I recently worked with a client to create an automated credit policy that consistently reviews accounts based on predictive credit attributes, public records and exception rules using the batch account review decisioning tools within BusinessIQ. The credit team now feels like they are proactively managing their accounts instead of just reacting to them.

 A solid credit policy not only focuses on opening accounts, but also on regular account review which can help you reduce your overall risk.

Credit policies are like a plant grown from a seed. They need regular review and attention just like the plants in your garden to really bloom.  A credit policy is simply a consistent guideline to follow when decisioning accounts, reviewing accounts, collecting and setting terms.  

A couple of key items to consider in reviewing  or establishing your policy:

• How many of your approvals have gone bad in the last six months? In the last year?
• What is your approval percentage?
• What is your decline percentage?
• What attributes of these bad accounts can predict future payment behavior?

 Using the decisioning tools within BusinessIQ, I recently worked with a client to create an automated credit policy that consistently approves and declines prospects based on predictive credit attributes, application data and exception rules. The credit team now has more time to focus on the minority of cases that are deserving of a manual review.

 Help your garden grow; a solid credit policy can help your company use its resources better – and reduce risk.

Summer vacations are in full swing and I can’t wait to spend some time at the beach with the family this summer. Since late payments and bad accounts never seem to take a vacation, I want to remind you of a couple of the tools we have available to help you manage your accounts.

1.      Register your accounts to be monitored and choose to be notified as events happen – everything from score changes, late payment warnings and public record updates.

2.      Run your accounts through a credit policy in batch format. This will provide consistent account review and give you the ability to act only upon those accounts with a decision or credit limit change.

3.      Last, but not least is regular account review though portfolio scoring.

Learn more about our account management tools – and hopefully regular account reviews can give you a vacation from bad accounts.

As a parent of two youngsters, it has dawned on me that managing the credit lifecycle is very similar to being a parent. In the beginning, whether it’s children or prospects, you’re doing everything you possibly can to research, learn, take care of and keep them out of harm’s way. As children age, similar to accounts, we tend to be more hands-off (teenagers and bad accounts prefer this approach), but both need managing/supervision. If things really go south, then there is the need for Collections or maybe boarding school, just kidding about the boarding school, but you get the picture. I don’t typically give parenting advice, but I am here to help you with your credit lifecycle needs.

1. Stay involved – regularly monitor and analyze your portfolio
2. Show some love to both your good and bad accounts – bad accounts need to be adjusted to reduce risk and good accounts might need more incentives to help them grow
3. Send the really bad accounts to Collections – it’s for everyone’s good

Learn more about our offerings – you’re on your own with the teenagers.

I’ve been on the road a lot these last few weeks visiting clients and prospects. While spending the night in the Dallas Fort Worth airport with storm warnings and getting stuck in Chicago wasn’t much fun, visiting and learning from clients/prospects always is. As the product manager for BusinessIQ, the information gleaned from these sessions has been critical in developing the product and continues to play a large role in the application’s evolution. We already have a busy Summer on tap with several product releases and enhancements planned.

Please keep the feedback coming. Click on the feedback link on the logged in BusinessIQ homepage and tell me what you like, what you don’t like and what you would like to see in the future. Together we can continue to develop and release the industry leading products you’ve come to expect from us here at Experian.

We’re live from Credit Congress 2011 and it’s hard to beat the Southern hospitality on display in Nashville.

Day one is in the books and we’re live on the floor for day two. There’s a lot of energy on display today with discussions about industry trends and new ways to manage today’s credit needs. Many exhibitors are highlighting new products and there is a general sense that the economy is improving with originations on the rise, but also a high demand for products that allow credit managers to manage their existing accounts. On display in the Experian booth is BusinessIQ and the new Premier Profile credit report. Combining solid payment, public record and demographic data along with Fraud detection, the easy-to-read Premier Profile is Experian’s version of Southern hospitality for credit managers.

Join us tomorrow in Nashville for an in-depth, live BusinessIQ demo at 1:00 CST.

Most of us are pretty familiar with credit reports and scores, but how many of you are aware of the additional tools available to help you manage the entire credit risk lifecycle? I talk to credit managers everyday and as we’re all trying to do more with less, it’s easy to forget that opening accounts is just the first step. Managing risk on these accounts is as critical, if not more so, than opening them.

While others may choose to “ship and chase”, you don’t need to. Proactive alert/monitoring services, regular portfolio scoring and segmentation are key components that a successful credit department needs to employ in the constant battle against “bad” accounts. Use these tools to proactively adjust credit terms and limits, both positively and negatively. Inevitably some accounts will go bad, but using collection research tools for skip tracing and targeting services for debt collection will put you first in line for collections. A journey of 1000 miles begins with a single step; we have tools that can help you with that journey and all can be accessed online.