1. With clear invoicing controls you will ensure that everything delivered will be invoiced. I have no doubt that every year millions are lost simply from not being invoiced.
2. With proper "Right First Time" procedures, you can manage your business, your margins and know that you are looking at a true picture at all times. Essential for decision making.
3. With a commercially focused credit team, they can prompt sales to the best and most profitable customers to pursue.
4. With a clear Credit Policy, everyone knows the rules and as long as it is enforced, it will reduce the internal conflicts that can be so damaging for business.
5. With trained and educated credit staff they have the ability to build strong relationships with customers and present a professional image at all times.
6. You would achieve better staff retention levels. When people feel what they are doing is important, recognised and rewarded, they are more likely to stick around.
7. By eliminating the seemingly eternal battle between sales and credit, where every department works together in the best interest of the business and are committed to delivering excellent customer service - everybody wins.
I could go on forever, I am hoping that you can see, even from the short list above, the benefits that are available. I have worked in the area most of my life and I'm still amazed that most business leaders simply don't get it. I am hoping that if I keep banging the drum, eventually somebody will see the sense in what I have been saying all along.
Article written by Declan Flood, Chief Executive of Irish Credit Management Training. Who is available to help you to get your credit under control through focused credit management education, and training
Declan is also happy to deliver motivational training for your Credit and/or Sales Teams on how to improve your whole business through the proper management of credit and by developing simple risk mitigation strategies and by putting the customer at the front and centre of everything that you do.
He can also show senior managers how a credit focused business can improve sales, improve customer experience and improve the bottom line.
You can contact Declan by email at email@example.com or by phone on 087 244 7052. Always happy to help.