Strengthen Your Financial Position and the ARM Muscle
By: Mark Kohls, Director of Development for Business Credit Reports
Getting in shape and improving health is one of America’s biggest pursuits. The U.S. weight loss industry is now estimated at roughly $60 billion. However, most people fall off the fit train because results aren’t realized quickly enough. Two-thirds say they have made a serious effort to lose weight at least once in their life.
The same pattern is true for trade data reporting. Like exercising and eating healthy, the reporting process can be arduous and the lack of immediate gratification causes many businesses to put this important task on the back burner.
But what if corporations nationwide stayed the course and made a concerted effort to report trade data? Individual businesses would see major growth and improvement. More importantly, the entire ARM muscle will be strengthened, and the credit industry improved.
How does Trade Data Reporting work?
Many components are factored into our quest for better health, including activities such as cardio, strength and stretch training, healthy meal preparation, maintaining a food log, and staying hydrated. Success is difficult if you consistently implement one element but not the others. Similarly, one or two businesses consistently reporting trade data isn’t enough for a credit industry overhaul. It requires the collective effort of corporate America reporting trade data that will create an efficient system to foster accountability and pump out economic progress. The advantages of trade data reporting include:
- Strengthening credit industry: Companies who report trade data help establish credibility and bolster the industry with the free flow of concrete financial information. The more companies that report their customers’ payment history, the more reliable the resulting financial data becomes.
- Growth: By sharing your customers’ trade payment trends you’ll pave the way for your success and growth. You’ll promote your ability to acquire more credit-worthy customers, accelerate payment, improve collections, and reduce cost. All benefits that will help you and your customers grow.
- Minimizing risk: Companies who rely on the major credit bureaus know that being able to trust their commercial insight is vital to monitoring risk and making sound business decisions.
- Leverage: Reporting your customers’ payment activity can change their behavior. Slow-paying customers will be more inclined to pay you on time. Those that pay on time will be rewarded by the opportunity to build credit and grow their business.
- Improved portfolio management: Reporting trade data will help you clean up your receivables and better manage your portfolio. You’ll be able to quickly identify which customers are able to pay and which are actually debtors and ready for some type of action.
The benefits above will also help lower your Days Sales Outstanding (DSO) and increase your cash flow. You will strengthen your financial position and the entire business community, while simultaneously becoming a valued partner within the largest commercial trade network – a network that provides you the most trusted commercial insight.
The biggest excuse American’s have for neglecting their health is that they don’t have enough time. Similarly, the “old school” process of trade data reporting demanded a lot of time, therefore compromising the health of the accounts receivable industry. Businesses were required to separately report to Experian, D&B, and Equifax. Fortunately, industry professionals have put their heads together to streamline the reporting process allowing companies to report their data to one repository, which then reports to the three major bureaus. As a result, the process is more efficient and business owners can reap the benefits of reporting their customers’ payment activity. Simply have a company, like Altus, submit it for you at no cost.
If you take only one action this year to improve the health of your accounts receivable, it should be to report your data. You won’t regret this easy step that benefits your business and the entire corporate community.
For more information on Trade Data Reporting and how to streamline the process, click HERE>>>
Mark Kohls, Director of Development for Business Credit Reports
For over 20 years, Mark has worked with thousands of companies helping them improve their credit review processes and increase their profitability. His experience working with Experian, D&B, and Equifax has given him significant knowledge of the strengths of each database. Prior to joining the credit world, Mark was a finance manager and a Russian linguist and intelligence analyst for the US Air Force and the National Security Agency. He lives in Hendersonville, TN with his wife and three sons.