Posted on 18/09/2015 in Home / Downloads / Credit information

Infographic: Credit Maturity Model

Four phases to optimal credit management
Credit Maturity Model Infographic

Credit Managers today are still solving problems at the end of the sales cycle, i.e. dealing with defaulters. However, credit management involves much more than managing debts. Modern credit management is increasingly heading towards a more predictive business operation: from preventing risks to spotting opportunities, identifying sales leads and predicting customer value. But how do companies shift from being less reactive when it comes to managing outstanding debts to becoming a credit management operation that’s proactively seeking for opportunities for growth?

How can you move on from being a reactive debtor management company to one which embraces the opportunities that evolve from effective credit management? The Credit Maturity Model outlines your company’s current position and indicates what you can do to proceed to the next stage.

Graydon has developed the Credit Maturity Model, a model that points the way to optimum customer management in four stages.

  • Primitive: At this stage, there is as yet no genuine credit management. The credit manager’s job content is extremely limited.
  • Professionalisation: Credit management is still closely related to reactive debtor management although at this stage things are more structured.
  • Preventive: At this stage, the company is aware that prevention is better than cure. External data, analyses, adapted procedures and intensive collaboration with other departments appear on the agenda.
  • Pioneers: The credit manager is fully occupied on ensuring sound operational management. Customer Value Management is at the top of the priority list.