Before anyone clicks on the comment option to say that a business would not exist without sales, let me say that you are absolutely right. Sales is the engine of business, but the credit team manage the fuel (cash) that enables it to drive forward.
My question is really aimed at identifying where sales processes could be improved to reduce costs and eliminate wasted time for credit teams. The rationale for asking the question comes from data captured in the OnePosting Credit Management Benchmark.
Hard facts from the benchmark are combined with feedback from benchmark participants in this article to identify areas where small improvements in the sales process could have a beneficial impact on credit management.
Continue reading How much does the Sales Team Cost the Credit Team? →
We all know that sales are critical to any business but there are times when sales reps agree to customer demands in relation to invoicing that place additional workload on accounts receivable and credit functions. But is it the sales person or customer who causes special handling overhead?
Continue reading Sales or Customers: Who Causes ‘Special Handling’ Overhead? →
It is clear from the results of the Credit Management Benchmark and from a review of various LinkedIn groups, that there is often conflict between sales and credit teams. Sales must have a laser-like focus on achieving their sales targets, and a task like credit screening is seen as a distraction. Even worse, declining to open a credit account for a customer can be seen by sales as the credit function creating barriers to their work.
Continue reading 5 Tips to Get the Sales Team Aligned with the Credit Team →