Managing your receivables in today's economy

The entire U.S. economy is under severe stress. According to recent figures from the American Bankruptcy Institute, business failures are rising throughout the country in every major industry sector. Confronted with this environment, receivables managers are increasingly pressured to ensure viability

within their respective organizations. While striving to maintain revenues, it's critical to exercise tight scrutiny in the granting of credit, so effective management of this asset-often the largest on the balance sheet-becomes a necessity in today's economic environment. Here's why the economy is stressed out and what you can do in the receivables management arena to strengthen your competitive position.

THEN AND NOW

The extended economic boom of the 1990s has come to a screeching halt as the American economy has slipped into a recession. Consumers who were tipsy in the last decade with a sense of newfound wealth resulting from a rapid run-up in stock market values are now reckoning with the reality of a major market correction. Many had borrowed against their lofty investment portfolios only to see them crumble, and since the sense of prosperity is gone, they're now spending accordingly and paying down debt.