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Doctor Credit

How does one determine whether or not the credit department is adequately staffed? My team is perpetually overworked.

Answer: There is no simple answer. Organizations such as the Credit Research Foundation offer credit professionals some insights in the form of published reports such as the one found at this link: http://www.crfonline.org/surveys/prodsurvey/2002CollectionProductivityResults.pdf

Unfortunately, studies such as this provide only part of the answer. For example, in a credit department that relies more on people power than computer software to manage risk and control aging, more bodies will be required to do the work. Similarly, if a creditor company operates in a highly competitive industry in which customers are large, demanding, confrontational and in which competitor companies will use credit terms to lure away customers the credit department will need a larger staff than in an industry in which the balance of power is more balanced.

 
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