Is Your Credit Department Making These Mistakes?
There’s no way around it, Credit professionals need to adopt a healthy dose of skepticism if they are to make wise day-to-day credit decisions.
It’d be great to assume that all customers are, at their core, honest people. But for Credit pros, that’s just not a good platform from which to operate.
Professional skepticism is a must. And THAT is the first of our 7 mistakes:
Mistake number 1: Lack of a healthy dose of skepticism. Every claim a customer makes must be examined for accuracy. Never assume honesty.
Mistake number 2: Failing to recognize that there is no credit decision that is without risk. No matter how solid things may seem, there is always a risk.
Number 3: Failure to see the warning signs. Keep your eyes and ears open for the flags that say ‘Trouble’.
Number 4: Thinking that a customer’s proposed payment plan is the ONLY option available. Negotiation is another option.
Number 5: Failure to view time as the enemy. Aged accounts are harder to collect. Turn the account over to collections before it’s too far gone.
Number 6: Accepting the commitment to pay without dates, times and details. Get your customer’s promises in writing.
Number 7: Thinking that your company is the only company your customer owes. Make it easier for your customer to pay you than to ignore you by standing out from the other creditors that are knocking at their door.
Is your credit department making any of these mistakes?