My sales department including sales management is complaining
that I am too rigid when it comes to extending credit to new customers...but
the companies they bring us are dogs. Any suggestions?
Answer: Yes, we recommend
that you encourage your sales department to tale a closer look at their
current book of accounts. It may be possible to build on their existing
relationship with these customers to sell more merchandise. As you know,
it may be easier to qualify an existing customer for a larger line of
credit than it is to offer open account terms to a substandard credit
risk. Ideally, the credit department will work with the sales department
to identify and target for increased sales volume customers that are
low risk. |