A credit management service is a type of support service that aids individuals and businesses in addressing issues regarding the extension of credit, or the management of credit already in hand. A service of this type may choose to focus on personal credit management, aiding individuals in defining and reaching their financial goals. At the same time, a credit management service may provide support services to businesses that aid in assessing the credit risk associated with potential customers, and managing the process of receiving and recording payments made from those clients. Services of this type may be obtained on an as needed basis, such as in a consultation situation, or be contracted for an extended period of time.
In terms of personal credit management, the service will normally aid consumers in identifying their credit goals. Those goals may include retiring current credit card debt, repairing damaged credit ratings in anticipation of making a major purchase such as a home, or providing month to month assistance in managing current debt on various credit accounts. Here, the approach of the credit management service often includes educating the consumer in matters related to financial management, helping to position the client to be more responsible with his or her resources.
A credit management service that focuses on business applications may provide outsourcing services to different types of commercial enterprises. For example, the service may handle the process of evaluating and clearing potential customers for credit accounts issued by the client. The idea here is to allow the business to utilize in-house resources for other purposes other than qualifying potential customers. Depending on the scope of the arrangement between the two parties, the credit management service may go beyond simply qualifying customers on the front end, and be actively involved in processing payments from those customers and managing any collection procedures necessary.
It is not unusual for a credit management service to offer more than one service package to its customers. A basic package may include a limited range of services that are provided on an ongoing basis, either weekly or monthly. More comprehensive packages would include a wider range of support services, sometimes tailored to the client’s specific needs. Those services may be provided at pricing that is locked by a contract, or extended on a month-to-month basis for a standard flat rate. This diversity in pricing and services makes it possible for businesses of all types and sizes to make use of a credit management service rather than attempting to manage the processes within the company structure.