COVID-19 knocked nearly the entire media industry for a loop. How do credit and collection teams cut clients a break, but still collect what’s due their companies?
The pandemic, coupled with racial and civil unrest, has devastated businesses and affected their advertising spend. When it comes to extending credit to, and collecting from, advertisers affected by this volatility, consider “thoughtfulness and creativity.”
In a filing Monday with the SEC, Disney said that it had signed a new 364-day revolving credit agreement with Citibank that would provide access to as much as $5 billion. The agreement, which matures on April 9, 2021, can be extended for an additional year with the lenders’ consent.
It is imperative that you evaluate your customers’ credit risk on an annual basis, by reviewing the volume and frequency of their business and payment history. Creditworthiness is the foundation of the client relationship, and that understanding your client’s creditworthiness is imperative. Evaluations must include both advertisers and the agencies.
BCCA, the media industry’s credit association, has announced the agenda and presenters salted for the BCCA Media Credit Seminar, which will be held on Tuesday, Nov. 7, at the New York offices of Lowenstein Sandler LLP in mid-town Manhattan. The event focuses on high-level credit-related issues for the media industry’s credit professionals, including those serving […]
It seems to be that, outside of an organization’s credit team, no one pays much attention to credit and collection until the economy turns for the worse or there’s a high-profile default. The rest of the time, it’s out of sight, out of mind. Here are seven recommendations on how to remedy that.
In addition to the new demands it places on ad sales teams, selling digital media also requires rethinking the roles by credit and collections departments during the sales process. Tony Pernice, a campaign specialist at Scripps Networks Interactive, explains the company’s comprehensive process for managing digital campaigns.
With ad revenue likely to climb next year thanks to the Olympics and political spending, it’s a good time to re-examine your credit policies to ensure they are optimized to support your objectives, including maximizing sales, minimizing bad debt and minimizing costs associated with credit investigation, billing and internal collection activities.
Measures such as streamlining and automating much of the credit application process and involving ad sales in ongoing monitoring of their clients’ risk profile have reduced the time required to provide credit approvals and created a transparent and consistent credit and collections process.