One of the most important relationships in any company or organization is the relationship that is established and maintained by and between the Credit Department and the Sales Department. All too often, these two integral parts of a business entity are at odds with one another rather than working together as a team. This type of negative relationship can very much adversely impact the overall profitability of any organization.
A contributory factor in this negative relationship has to do with the typical mindset of a credit professional versus the typical mindset of a selling professional. On one hand, inherently, a credit professional uses extreme caution when extending credit or opening an account with extended terms beyond one day. They don’t like to gamble and frankly can be very stingy. On the other hand, inherently, the primary motivator to a selling professional is selling the product or service without considering the risks involved in making the sale. They are willing to gamble that the sale will be paid for and as a result will want to be very generous with credit terms.

As a business owner, totally adopting either one of these mentalities can have devastating consequences. The best scenario and one that should be encouraged is a cooperative relationship between your credit and sales departments, working toward the common goal of increasing sales while at the same time minimizing risk. Believe it or not, this concept is not only achievable, but is very much attainable. Each department must understand that in the case of any marginal sale, there is a need for cooperative analysis through positive dialogue. It is a fact that most sales can actually be completed without compromising security.

CreditPro Financial Services, LLC can be your source to address these and many other factors that negatively impact your bottom-line. Please call 216.402.9988.