The human factor in credit management.

I read every available article I can find pertaining to credit, as continuous education is essential to developing and growing professional skills. There are countless articles on bankruptcy, UCC liens, collection techniques, etc., which are all valuable and necessary. The one area rarely addressed is the human side of working in credit.

Whether you are doing business with an owner directly or with a large corporation, the equation is essentially the same; people interacting with people. As credit professionals, we have a responsibility of stewardship. This must be undertaken seriously, but not impersonally. Guard against becoming so involved in measurements, DSO, cash flow forecasts and aging analysis, that you risk losing sight of the fact that your customer is also a person.

It may sound trite, but the major problems of business--or the world, for that matter--would virtually disappear if everyone practiced the "Golden Rule": Remind yourself that the person you are speaking to is not much different from yourself. They have worries, concerns, loved ones, dreams, hopes and expectations. Doing unto others as you would have them do unto you pays immediate and long-term dividends. Confront someone in a hostile, arrogant or belligerent manner, and the reaction will likely be a mirror image of what you're projecting.

On the other hand, if you approach ...