10 Key Elements of Success for Credit Managers

10 Key Elements of Success for Credit Managers 2017-05-22T06:17:49+00:00

Want to make your presence felt?
Here are some tips to make your mark.

Elements-of-Success

  1. Build a culture that makes your organisation credit aware
  • Recovery is in everyone’s best interests – payment needs to be encouraged as well as sales;
  • Develop your Credit Policy & Procedure – use it as a tool to involve Sales and Management
  1. Get the invoicing right
  • Collections start when the customer first comes on board;
  • Give the customer the ability to get an up to date correct balance at any time;
  • Get correct names, address, Invoices, proper allocation of credits etc.

  1. Give the Customer payment options so they will pay when due
  • Give the Customer every conceivable option for payment – cash, cheque, direct deposit, credit card, Bpay, payment vouchers, Smart Cards, Internet payments, direct debit, instalment;
  • Give priority to your collection focus – look at the size of an account, industry grouping etc.
  1. Work on and build up that Customer relationship
  • Build up a trusting rapport so that you can assist your customer not only in the harder times but in the better times and help them grow the business;
  • Customers love to know what you can do for them so anything of a value added nature is a winner.
  1. Have processes in place to identify problems early
  • Try calling or sending an SMS before the payment is due to confirm everything is still on course;
  • Get your Sales Reps to let you know of any market rumours.
  1. Train your people so they can properly perform
  • If you think training is expensive, how much does it cost you having untrained people trying to do the job? Train people properly and train them well. Grow them and you will grow accordingly.

  1. Get your reporting systems giving meaningful and accurate measures of where you stand
  • Don’t just report the same old things the same old way. Question the need and effectiveness of any reports you do – is there a better way this could be done?

  1. Give your staff the authority to negotiate any payments (subject to your Credit Policy) without recourse to

        you e.g., write offs, payment arrangements

  • Learn to delegate, you’ll be surprised how people will rise to a challenge.
  1. Make sure your IT systems are customer centric
  • Your IT systems should tell you all about the customer e.g. payment habits, level of purchases etc. Use your systems to identify the ones that can grow (and grow with them).
  1. Work closely with your Service Provider and your Professional Body
  • They will have access to other resources, information, knowledge and experience. Use them as an extension of your Team;
  • Get them in and talk about where you want your Department or business to go.

Want to know more? Contact Ledlin Lawyers on 02-8488-3389