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Credit Department Goals

The Credit Department should establish goals to strive for.   This is very important as it gives you the opportunity to determine what the goals should be and who they should be for.  

Keep in mind that before goals can be established, you will need to understand what the company philosophy, mission and goals are and specifically what management expects from the Credit Department.  In addition to Management, other important departmental relationships exist for which goals can be established, including Sales, Accounting, Operations, etc..  

From this information, the Credit Department will then be able to determine more detailed goals from which all staff members should strive for.  Here are a few items that may be important to you.

Measurable Goals

• DSO
• Bad debt write offs
• Bad debt reserves
• Delinquency percentages
• Time period to open new accounts
• The time period for contacting past due customers. 
• Percentage of orders credit held
• Time period to process credit held orders
• Credit expenses

Departmental Goals

• Meet Management requirements
• Meet Sales requirements
• Meet Operations requirements
• Meet Accounting requirements

Customer Goals

• Meeting overall customer requirements for fairness,  customer service, invoice and bill presentment,  claim settlement, etc.
• Specific customer goals - have you improved your relationship with xxx company?  Improve pay habits for certain customers.  Have you been able to obtain financial statements on xxx company, etc.
• Customer visitation goals.