5 Pillar Framework

What are the 5 Pillars of Confident Cashflow?

Our 5 Pillars are a framework which enables us to assess all the activities that relate to the way you deal with cash and credit.

With the clarity that the review brings, we can create and document your best practice credit policy as well as the forms, documents and procedures that sit beneath it.

Revising your credit policy (or implementing one for the first time) requires a thorough audit of the way your business works and success will depend on having total buy in from everyone who plays a part in the decision-making process.

  • 1. Prevention

    This pillar is all about having the right policies and processes to ensure a robust approach to credit and payment terms across the whole of the business

    • New customer application process
    • Creditworthiness assessment
    • Customer segmentation
    • Terms and conditions
    • Credit policy

  • 2. Operation

    The second pillar looks at whether the operational approach supports robust credit management so that you have consistency throughout the business

    • Information management
    • Invoicing
    • Credit control
    • Bad debt management
    • Training

  • 3. Detection

    Pillar 3 focuses on continuing to monitor creditworthiness through the lifecycle of a client/account to highlight early warning signs before problems manifest and cause additional risk to your business

    • Credit limits
    • Ongoing creditworthiness assessment
    • Monitoring
    • Target setting & KPIs
    • Communication

  • 4. Integration

    The fourth pillar ensures the credit policy is fully integrated with all aspects of business process and confirms accountability across the business so that there is never confusion about which decision to make. This helps to ensure all parties are invested in protecting the profit of the business.

    • Roles & responsibilities
    • Dispute management
    • Sales & Credit
    • Supplier management
    • System support

  • 5. Review

    The 5th and final pillar will continue to monitor what is working and where improvement is needed to ensure best practice is maintained and the policy can remain relevant and grow with the business.

    • Process review
    • Risk management
    • Reporting
    • Gap Analysis – Targets & KPIs
    • Future Risks

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