I am under tremendous pressure to sell more to a high-risk
account. This particular customer has a deficit net worth and is in serious
trouble based on the number of vendors the customer is paying slow, and
the number of accounts that have placed the debtor for collection, and
the existence of at least two tax liens on the company. Sales management
is pushing hard, and I am getting no support from my CFO on this. Any
advice?
Answer: Yes. Indicate
that since the customer has a deficit net worth and is therefore technically
insolvent/bankrupt. Add that based on this issue and the other problems
with the account that you cannot offer a larger credit limit. Inform
your manager and sales management of your decision. If the sales manager
calls, tell them that the decision has been made, and if they have any
observations to take it up with your manager. If your decision is overridden,
get management's instructions in writing. |