My company is considering giving the sales department credit
granting authority for new accounts for a limited dollar amount – such
as $1,000. In effect, customers would be given instant credit for up
to $1,000. How would you respond to this idea?
Answer: It depends.
If management is truly interested in your input, I would tell them that
extending credit without any credit check is a bad idea. If this is already
a “done deal”, I would concentrate on documenting the bad
debt losses and the dollar amount of payment delinquencies associated
with this new program. |