The need for credit training to increase profitability

Credit management is one of the least understood of all business functions. At senior management level the thinking is often that credit is solely around the collection process and getting paid within a reasonable time. The fact that success is still being measured by DSO and percentage overdue is proof of this mind-set. For the function to progress a number of things must happen:

  • We have to see the function from start to finish as an all-encompassing role that begins with assessing the market to find suitable customers we are prepared to do business with. I see it as pre marketing and definitely pre sales. To avoid wasting time talking to potential customers that we are not prepared to do business with on a credit basis after the order arrives is the wrong way to go about doing business in the first place.

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