First Aid For the Credit Department

Typically, when management is unhappy with the performance of their credit department, they replace the credit manager. The hope is a new sheriff will bring fresh ideas and a change in direction. Most of the time, management knows something is wrong, they just do not know what it is. They are relying on the new person to figure it out and fix it.

When a company follows this course, all they are doing is exchanging one set of experiences for another. Credit managers bring experience and some level of know how. If something changes with an organization, the credit manager may or may not be equipped to handle it. So, the company looks for another one, with the kind of experience that fits the current problems

The accounts receivable will continue to decline during the duration the new credit manager gets familiar with the lay of the land. Usually this process faces delays as the new manager deals with all the fires that have flared up. Then there is that period when change is recommended, accepted and implemented. This assumes the new person will actually come up with a workable plan of action. This is followed by measuring the changes and assessing the results. Hopefully, management made the right choice and the downward trend is finally reversed. The turnaround process could take somewhere between six to twelve months.

The company might be better served to turn to CreditPowers. Not only do we have the experience, we know how to make some immediate assessments, work with the current credit team, make recommendations, implement and train the staff and follow up as needed. Consider it a quick start for your credit department.

First, we look at the current situation. This involves a discussion with management and a review of the accounts receivable over a period of the last three or four months. Equipped with these findings, CreditPowers will go to work, meeting with the current credit department, making recommendations while evaluating the staff. Further recommendations can be made as a result of this session. Implementation and the necessary training begin simultaneously. All the while, there is no interruption of the current work flow. There is no period of adjustment, acquainting or reflection. We go to work to fix the problems immediately. The accounts receivable can begin to recover without any further delay. That translates into improved cash flow, improved morale, better efficiencies and increased production.

CreditPowers comes with a proven collection strategy, a method to bring the credit group and the sales team together, a system of bench marks and assessments and resources.

For more information, e-mail us at patrickpowers@sbcglobal.net