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Credit
Department Goals and Objectives
It is the
responsibility of the manager of the credit department to plan and direct
the activities of the credit function within the guidelines of company
policy.
The goals
and objectives of every credit department should include:
- Increase
sales and profit through a better understanding and skillful handling
of all credit functions
- Match
risk and reward through customer and financial analysis
- Monitor,
protect and manage the company's investment in accounts receivable
- Communicate
the condition, cost and trend of the company's investment in receivables
to management
- Convert
accounts receivable to cash in a timely manner
- Increase
cooperation between sales and credit
- Maintain
and increase goodwill in customer relations
- Coordinate
credit activities with all departments
- Train
and supervise credit department personnel
- Educate
other departments about credit and the credit function
- Control
operating costs and expenses
- Reduce
collections and bad debt
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