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Understanding the relationship between credit and sales.(Headline)

Business Credit

| May 01, 2006 | Sciannella, Matthew J. | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Of the many relationships a company s credit manager will cultivate and attempt to maintain, the most important one may make, can be found within the office the credit manager works in: the sales person. The relationship between the two has the potential to be combustible or bountiful for both sides, depending on the openness of each to make it work.

The first issue to consider is the differing agendas of each. The credit manager has an eye toward the well-being of the company as a whole, whereas the sales person is likely to be more focused on their personal goal: the sales person aims to make as many sales as possible--and they sometimes will hedge information in order to make the sale happen.

Why would a sales person do such an irresponsible thing? The main reason points to the salesman seeing the credit manager as an obstacle rather than a support beam. What isn't always understood between the two parties is that the credit manager, like the sales person, wants to make the sale happen just as badly. However, if a client has a shoddy credit record, the credit manager will not jeopardize their ...

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