How can we persuade senior management that our opinions about customers are more rational than the appeals made by management by the sales department when we refuse to release an order - or refuse to accept an applicant for open account terms.

Answer: : You cannot always do so.
Rational discussions have their place. Practical business necessity demands that creditors take some risks. The question becomes how to balance out risk and reward. This process can be likened to feeling your way across an unfamiliar room in the dark. My recommendation is that the credit department's rationale should be well documented and well reasoned, and presented professionally. I think one of the mistakes that some credit managers make is to remove all emotional content from their recommendations. Example: The phrase: "I believe this order should not be released" certainly does not carry the same weight as: "I strongly recommend that we do not release the order pending."

The previous statement does not have the same impact on the decision making process as the following comment: "You pay me to give you the benefit of my education, experience and intuition as it relates to managing credit risk. In my opinion, this is not the type of credit risk this company wants or needs to take!"