credit risk

The challenge for credit professionals involves identifying credit risks before an advertiser or agency files for bankruptcy protection. This is becoming harder in today’s digital media world. Here are some suggestions on how to figure out the best ways to evaluate credit risks.

C. Robin Szabo, president of Szabo Associates, says a good credit manager knows the difference between managing credit risk and avoiding it: “The goal of monitoring the high-risk customer is to determine — as early in the game as possible and at any given time — who will pay, who cannot pay and who will not pay.” He explains how stations and their credit managers can make those determinations.

Here are suggestions on how to maximize sales while keeping credit risk at acceptable levels. Also, MFM’s BCCA introduces a new credit report called Media Whys that includes a credit score based on industry-specific aging combined with trade data from Experian or D+B.