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CMS helps businesses recover debt, reduce risk, and improve receivables performance across the UAE and beyond.
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Every week brings another headline about the GCC: record foreign direct investment, mega-projects, a young and fast-growing consumer base. It’s easy to read the coverage and conclude that entering this market is simply a matter of showing up with a good product and the right local partner. But...
Credit Management, CFO, Business Ownership, Leadership
Credit management sits at an uncomfortable intersection. On one side: the pressure to collect, to protect the balance sheet, to hit the numbers. On the other: a human being, a business owner, a family, on the receiving end of every decision we make. How we hold that tension...
Credit Management, CFO, Cash Flow, Bad Debt, Receivables, Debt Collection
You have worked hard to get where you are. The qualifications. The years of experience. The financial modelling, the board reporting, the treasury management, the audit cycles, the investor relations, the strategic planning. The ability to look at a complex set of numbers and understand immediately what they...
CreditRating, KYC, CFO, Financial Transparency
There’s a pattern emerging across B2B lending and credit markets that deserves a direct conversation — companies pursuing credit facilities while simultaneously resisting the very process designed to secure them. The Disconnect at the Heart of B2B Credit When one business extends credit to another — whether through...
Credit Management, Cash Flow, Bad Debt, Debt Collection, Credit Policy
Board directors carry a fiduciary responsibility for the businesses they govern. They are there to provide oversight, to challenge executive decisions, to ensure that the organisation is managing its risks appropriately and building sustainably for the long term. That responsibility covers financial risk. It covers operational risk. It...
Credit Management, Cash Flow, Bad Debt, Credit Policy, Receivables
Credit management suffers from a perception problem. In the minds of most business leaders, it is a back-office function. A necessary administrative overhead. Something that happens after the sales team has done the real work. Something that matters when things go wrong but is otherwise invisible. That perception...
Credit Management, Cash Flow, Bad Debt, Receivables, Credit Policy
It is one of the oldest questions in trade credit. And it remains genuinely unresolved in most businesses — not because the answer is unknowable, but because most businesses have never systematically looked for it. Do you change payment behaviour more effectively by rewarding early payment — discounts,...
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Credit Management, UAE
Most UAE businesses know they should have a credit management policy — but surprisingly few actually do. Without one, your finance team is making inconsistent decisions, your sales team may be extending credit to high-risk clients, and your cash flow is more vulnerable than it needs to be. Here are five clear signs that your business needs a formal credit management policy, and what to do about it.
If your business extends credit to clients without a formal credit application — including company details, bank references, trade references, and signed terms — you are operating without a safety net. A credit application form is the first line of defence against bad debt, and it is also legally important if you ever need to pursue a debt through the courts.
Days Sales Outstanding (DSO) is the average number of days it takes to collect payment after a sale. If your DSO has been increasing over time, it is a sign that your payment culture is drifting in the wrong direction. A strong credit management policy, consistently enforced, is the most effective way to arrest this trend and bring your DSO back under control.
When payment terms and credit limits vary from client to client based on personal relationships rather than risk assessment, your exposure is uncontrolled. Consistent credit policies protect your business by ensuring all clients are assessed and managed according to the same objective criteria — regardless of who brought them in or how long you have known them.
Sales teams are incentivised to close deals, not to protect cash flow. When salespeople make credit decisions — or pressure finance teams to approve credit for high-risk clients — it creates a conflict of interest that almost always ends badly. A credit management policy clearly separates sales and credit approval functions.
If writing off bad debts has become a routine part of your annual accounts rather than an exceptional event, something is fundamentally wrong with your credit management approach. Some bad debt is unavoidable, but high or growing write-offs are a clear signal that your credit controls need strengthening.
A good credit management policy covers credit application and approval procedures, credit limits by client tier and risk profile, payment terms and escalation processes for overdue accounts, a clear collections procedure with defined timelines, and regular
review of the debtor ledger. CMS offers Credit Consulting services to help UAE businesses design and implement policies that are both practical and effective.
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