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- Bankruptcy and Bankruptcy Code
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- Bad Debt Write offs; Bad Debt Losses
- Calculating Bad Debt Reserves
- Bad-Debt Write Offs; Uncollectible Accounts Receivable
- Computer Skills and the Credit and Collection Function
- Consignments; Consignment Sales
- Credit and Sales; Using Salespeople as Collectors; Team Based Account Management
- Credit Department and Organizational Structure
- Key Activities of the Credit Department; Role of the Credit and Collections Department
- Credit Department Goals and Objectives
- Credit Department Organization; Centralized vs. Decentralized Credit Operations
- Credit Policy Overview
- Divestitures
- Downsizing the Credit Department; Planning and Pitfalls; Outsourcing
- Economic Downturns; Recessions; Layoffs
- Electronic Data Interchange (EDI)
- Finding, Attracting, and Retaining the Best Employees
- Escalating A/R Problems to Management
- The Credit File; Keeping the Credit File Current
- Improving Inter-Departmental Relationships
- Lockbox; Bank Lockboxes; Improving Cash Flow
- Motivation and Performance
- UCC 1 Perfection by Filing
- Required Areas of Knowledge for a Credit Professional
- Impact of Bad Debt Write Offs; Bad Debt Losses
- Shipping Procedures
- Improving the Effectiveness and Efficiency of the Credit Function
- Building Bridges Between Sales and Credit
- Dormant Accounts
- Training Collectors
- Customer Retention
- Working Proactively in Credit and Collections
- Goal Setting for the Credit Department
- Myths about Credit Management
- Credit Practices
- Collection Practices
- Financial Analysis
- Financing Methods
- International Credit
- Laws and Regulations
- Payment Methods
- Performance Measures
- Security Instruments
- Career Management, and Job Change
- Credit Website Tools
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- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
Economic Downturns; Recessions; Layoffs
During an economic downturn, the credit function may be impacted in a variety of ways including headcount reductions. Layoffs, hiring freezes and other austerity measures taken by companies may have an unexpected and unwanted impact on the credit and collection function. Often, headcount reductions are made company-wide, required in every department including the credit department. The workload remains after a layoff or a hiring freeze and therefore must be re-allocated. Headcount reductions in other departments can result in delays in providing documentation needed to address and resolve disputes and deductions and as a result collections may be delayed.
It is ironic that in an effort to improve the creditor company's net income by reducing operating downsizing the credit and collection department may affect the company's cash flow which in turn may cause it to miss out on discounts offered by its suppliers.
Edited by Michael C. Dennis.