Staff Needs and Standards

Where do you get credit staff? You may have an existing employee who has worked for you for many years, who knows all your customers, and has no trouble getting your invoices paid on time. This is a common scenario in many companies. What will happen when this capable employee leaves the company or is sick etc.?

Some other companies have a bookkeeper who comes in once or twice a week ‘to do the books’ and chase payments. My experience is that the bookkeeper leaves very little time for debts, and has a general dislike of ‘chasing debts’.

Most companies have dedicated Sales Ledger staff: again, my experience is that they would rather file documents for hours at a time than make one telephone call to a debtor. I would never suggest they would all avoid debts. If you have one that gets ‘stuck in’ you should look after them!

The other scenario is the business owner chasing payment. You may be very good at it, however, I am sure you would be better deployed at the core of your activity.

To be able to control and expand the asset of credit, a minimum level of specific resource and knowledge is crucial. Whoever has the responsibility of Credit Management within your company, they must posses the skills to maintain your debtors at the determined levels.

You need a dedicated member of staff who relishes the task of managing your credit function. Is experience more important than enthusiasm with the ability to learn? I would say “no”.

You obviously cannot train someone to be enthusiastic. If your credit staff is not enthusiastic then you are loosing money! There are many good books on credit management that you can get through The Institute of Credit Management (and a number of emerging training companies) you have the means to train and develop a first class credit controller.

The standards you set for your credit sales must be those that ensure your company is profitable. Do not be tentative when setting credit limits and standards for your new or existing customers.