Covering Business Credit

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Business Credit and Collections
Commercial Credit Management

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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.

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