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- Bankruptcy and Bankruptcy Code
- Business Entities
- Departmental Operations
- Allowances
- 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
- Presenting and Defending Your Credit Decisions
- 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
- Upcoming Educational Events
- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
Presenting and Defending Your Credit Decisions
Business necessity demands that creditor companies take some credit risks. The question becomes how to balance out risk and reward. This process can be likened to feeling your way across an unfamiliar room in the dark. As it relates to explaining or defending your decisions, I recommend that your decisions be ell-documented and well-reasoned, then presented professionally. One of the mistakes that some credit managers make is to remove all emotional content from their recommendations.
For example, the statement: "I believe this order should not be released" does not carry the same weight as this comment: "I strongly recommend that we do not release the order pending." An even more complete response would be: "You pay me to give you the benefit of my experience managing credit risk. In my opinion, this is not the type of risk this company needs to take!"
© 2010 by Michael C. Dennis. All Rights Reserved. Michael is the author of "Credit and Collection Handbook."