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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
- 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
Working Proactively in Credit and Collections
Credit departments need to operate proactively. Here are a few examples of this concept:
- Asking the sales department to provide customer specific sales forecasts so that the credit department can determine if existing credit limits are adequate.
- Strengthening working relationships with customers.
- Forecasting cash inflows to ensure that the company has the cash it needs to meet its current obligations.
- Updating credit policies and ensuring that these policies mesh with the overarching goals of the creditor company.
- Performing risk analysis on new applicants as well as on active customers.
- Considering every option before any applicant is rejected for open account terms.
- Meeting periodically with sales management to understand the sales department's goals and objectives.
- Striving to accelerate the order approval and credit decision-making process.
- Educating sales about how credit decisions are made.
- Providing credit department personnel with the information, skills and authority to resolve problems recognizing that individuals will avoid situations requiring problem solving skills when they are unsure of how to solve the problem or do not have the authority to do so.
- Proactively screening applicants for the sales department.
- Eliminating bias from the credit decision-making process before a third party identifies it and reports the problem.
© 2010 by Michael C. Dennis. All Rights Reserved. Mr. Dennis is a business consultant and the author of "Credit and Collection Handbook" available on Amazon