Contrary to popular myth the credit department does far more than
harass customers for money. A modern credit department will proactively
manage risk by:
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Setting rational credit terms.
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Strengthening business relationships with key customers.
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Forecasting cash inflows.
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Updating credit policies.
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Performing risk analysis on new applicants and on active customers.
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Pre-qualify prospective customers.
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Consider all options before any applicant is rejected for open
account terms.
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Meeting periodically with sales management to understand the sales
department's goals and objectives [and vice-versa].
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Strive to accelerate the order approval process in particular ---
and the credit decision-making processes in general.
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Educate sales about how credit decisions are made.
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Eliminate bias from the credit decision-making process.