Feeds

Credit Management meets computer automation

A necessary balancing act. A risky business

Business security measures using SSL

Recession shakeup

Matters have been shaken up by the recession. Red lining - the practice of simply refusing to offer certain products on the basis of where people live - has long been outlawed by the Office of Fair Trading (OFT). However, there is an ongoing debate around issues of financial exclusion: The fact that it is often the poorest in our society who pay most for credit. Government - and in particular the Department of Business and Enterprise (BERR) - is concerned with how business grants credit: a Consultation on the implementation of the consumer credit directive is under way. And there has been much focus on what are considered to be bad or irresponsible credit handling habits.

One danger of tightening up credit controls now is that as we emerge from recession, the number of individuals categorised as "greys" by financial and other concerns will be much enlarged. Many individuals will have blotted their credit copybook - and the industry will need some latitude in order to bring these individuals back to the fold.

Philip King, Director General of the Institute of Credit Management, is well aware of this issue. Talking to The Register, he said: "The reality is that with less funds available from banks, the solution for many businesses is to beef up the flow of cash into the business.

"Some businesses are being draconian, reacting - or over-reacting - to present circumstances. Smart businesses are looking at their customer portfolio, working out who pays regularly and well, whilst looking more closely at those who represent a higher degree of risk.

"The best approach may be to reduce payment terms, whilst giving something in return: Simply demanding faster payment, mismanaging the relationship in any way, may store up problems for the future, when the economy picks up again."

At base, he recommends against businesses just getting tougher. Best practice, he observes, is about segmenting and dealing with individuals. He adds: "Automated systems are a good way of driving activity, but they should never overtake thought. There will always be a need for rational judgment."

Additional tips on how to manage cash flow and credit - possibly more relevant to the B2B environment - can be obtained from a series of guides put together by the ICM and BERR.

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.