Published Articles by David Balovich
||RESPONSE TO THE SEVEN STEPS TO A SUCCESSFUL CREDIT
The response to our last article on "7 Steps to a Successful
has been overwhelming. If you have not received your copy as of
writing, be assured it is in the mail.
A few years back I wrote a column that created a bit of a stir. In
suggested that the information obtained through the credit
process be shared with others in the company, especially sales,
to reach a general consensus of what the company should do.
readers were outraged by the suggestion and not only wrote to me
Others went so far as to attack the proposal on other web sites
giving those who had not read my article the opportunity to hear
sides of the argument [obviously a lesson learned while attending
William Randolph Hearst School of Journalism]. I did, however,
many publications outside the credit community asking to reprint
article and from that I received invitations from several
organizations and companies to speak on the subject.
I not only accepted those invitations but created a presentation on
interdependency of sales and credit. It has always been my firm
that the conflict between the two functions is self created and
eliminate misunderstanding is to communicate. The easiest way to
communicate is to share with each other what the other is doing.
presentation I discuss what happens when the order is received in
credit department, the way the customer's credit is investigated
reasons for the information requested on the credit
I elaborate on the credit investigation and the evaluation of the
and how when more information is made available the decision not
becomes easier but also quicker. To date, the response has been
and the sales people I have had the pleasure of spending time
me they now understand that the role of the credit
department is not to prevent a sale but rather to maximize
sales expeditiously and make their job easier.
The absolute enormity of the role of the credit department in
profits will be more understood and recognized by other members
organization only if we begin to remove the barriers we have
that the lines of communication flow more freely.
I wish you well.
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