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Maintain DSO at or below industry norms
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Control bad debts to < .25% of total sales
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Reduce cycle time for application processing to one day or less
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Ensure that no order remains in the credit queue for more than
one hour without being reviewed by credit department personnel
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Make certain that all active customer account files are updated
and reviewed at least once a year
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Attend the annual sales meeting. Give an educational presentation
to the salespeople
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Reduce complaints from sales about the credit department by taking
the time to explain negative decisions in sufficient detail
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Work with sales to pre-qualify or tentatively qualify potential
customers so that the sales department does not waste its time on
unqualified candidate companies
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Update the credit manual as necessary to keep it current
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Look for and recommend cost saving ideas
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Work with collectors to make sure every account is called within
ten days of becoming past due... irrespective of the amount owing
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Work with collectors to ensure collection calls are being prioritized
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Make certain cash is posted within 24 hours of receipt
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Cross train everyone in the department in at least one additional
job title
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Create a cooperative working relationship with the sales department
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Encourage subordinates to attend night classes and other programs
that improve their job skills
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Recommend opportunities to increase sales whenever you find them
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Ensure the goals of the credit department tie in closely with
the goals of the company
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Understand the level of credit risk and the amount of payment
delinquency the company can tolerate and keep below these levels
at all times
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Give as much advanced notice of possible adverse action as possible
to the sales department about their customers