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Good credit control delivers cashflow and financial strength. But it is also part of the sales process. For successful payment management especially in difficult times, credit controllers need to be impartial and objective, but need to understand their part in the sales process, and the short and long term impact of their decisions within the business. • Individual learning objectives • Credit management – the effect on the business • Credit management as part of the sales process • Profitable partnerships with clients • Effectiveness v efficiency • Credit management disciplines – managing your time effectively • The credit management cycle • Setting and achieving targets • Building relationships with accounts payable personnel – being versatile with different people • Communication skills – asking the right questions • Using the telephone to achieve your required outcomes • Being assertive when face with can't pay or won’t pay • Asserting your payment terms and dealing with the reasons why payment isn't being made • Getting your invoice put to the top of the pile • Controlling the call • Dealing with customers “on stop” • Dealing with irate or dissatisfied customer • Negotiating payment with customers • Communicating key information internally • Learning Review • Action Planning
Credit control is as important as sales. Without sales, survival is not possible. Hence to increase sales, credit sales is imperative. To extend credit , credit management rules to be followed alongwith credit poolicy of the organization.
Study past performance and extend credit in good performing areas /sectors.
Set a certain percentage of credit for every sector. It should be not more than10% in each sector.
Keep non performing credit within5% of total credit.
Pursue recoveries as it become due.
Know repayment history of customer and then extend credit.
Credit controllers play a key role in many organisations, as their job is to successfully resolve any outstanding debts owed to the company. With the economy as it is, managing cash flow is a vital to any successful business.
Plan an appropriate strategy for collection calls
Project a positive, professional but appropriately determined attitude
Use motivation rather than coercion as a persuasion method
Collect the payments and maintain a profitable relationship with the client
Effectively handle evasion and attack and defend behaviours from the debtor
Enhance the organisations customer service image whilst proactively collecting overdue accounts
Credit control is as important as sales. Without sales, survival is not possible.
Hence to increase sales, credit sales is imperative.
To extend credit , credit management rules to be followed alongwith credit poolicy of the organization.
First and foremost, what is the industry practice. Never exceed industry norms for period of credit.
Study past performance and extend credit only in good performing areas /sectors.
Set period & percentage of credit for every sector.
Set a limit on non performing credit as percentage of total credit.
Pursue recoveries as it become due( sometimes even before they are due)
Know repayment history of customer and then extend credit.
Already elaborated by experts
Knowing the market and the customer in details.
Knowing the product in detail and its viability if a commercial asset.
Strong hold in understanding of financial statements.
Understanding of the vision of the business / targetted Net Credit Loss and thereby targetted risk weighted rate - are three important parameters for a credit controller to take decisions when it comes to credit appraisal.
Good credit control delivers cashflow and financial strength. But it is also part of the sales process. For successful payment management especially in difficult times, credit controllers need to be impartial and objective, but need to understand their part in the sales process, and the short and long term impact of their decisions within the business. • Individual learning objectives • Credit management – the effect on the business • Credit management as part of the sales process • Profitable partnerships with clients • Effectiveness v efficiency • Credit management disciplines – managing your time effectively • The credit management cycle • Setting and achieving targets • Building relationships with accounts payable personnel – being versatile with different people • Communication skills – asking the right questions • Using the telephone to achieve your required outcomes • Being assertive when face with can't pay or won’t pay • Asserting your payment terms and dealing with the reasons why payment isn't being made • Getting your invoice put to the top of the pile • Controlling the call • Dealing with customers “on stop” • Dealing with irate or dissatisfied customer • Negotiating payment with customers • Communicating key information internally • Learning Review • Action Planning
By updeting them on the requirements ofvthe actual market in terms of technology security systems,and fraud schemes.
