Getting Credit and Sales on the Same Track
How can you minimize the differences between Credit and Sales and get them to begin working in a spirit of cooperation? Here are some ideas: 1. Revisit your credit policy to make sure it is up to date and in keeping with the times (e.g., emphasizing today's focus on customer service and expanding the customer base). If it is not up to date, reinvent it, seeking input from the sales department and senior management. Work toward a policy of "no sale will be turned away," except in the case of an applicant or customer with a history of fraud or other inappropriate behavior that could harm your organization. The "no-sale-will-be-turned-away approach" will require creative approaches to financing, of course, such as credit card payments and personal guarantees. 2. Establish a clear and concise credit application/agreement. Make sure all salespeople understand the nature and purpose of this document and why it is important to have prospects submit complete and accurate documents. 3. If possible, arrange some time to give presentations at sales meetings. Share some of your concerns, but don't whine or complain. If you don't have the opportunity to make presentations, at least ask whether you can sit in on the meetings as a silent observer. You can learn many of the challenges the sales department faces and how you may be able to assist through your role in credit and collections. 4. Along the same lines, ask whether you can participate in new salesperson training by providing an orientation on the credit and collections philosophy, policies, and procedures. Encourage an open forum, helping the new salespeople feel comfortable with you from the beginning. 5. Encourage innovative ideas for credit and collection practices from others in the company--managers and employees in all other departments as well as your employees. 6. With the approval of senior management and sales management, considering sponsoring contests in the sales departments for such accomplishments as the most credit applications fully completed and the best assistance in collecting from a problem account. Most salespeople love recognition, so you can offer prizes, certificates, and recognition ceremonies (possibly at the sales meetings where you make presentations). 7. As you come across prospective sales leads (from credit meetings, trade publications, professional contacts, etc.), make it a point to pass these on to the sales department. Prescreen these prospects so that if the sales department does arrange to do some business with them, credit will already be approved. 8. If possible, try to accompany salespeople on some field calls to customers. You'll not only have the opportunity to get to know your customers better, but you'll also improve your knowledge of the sales process. Editor's Note: The above article originally appeared in the Credit & Collection Manager's Letter, a newsletter purchased by Credit Today in 2006.
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