1nL CkLDI1 AND CCLLLC1ICN CLkA1ICNS

A CU11ING LDGL" A Sa|e |s never a sa|e un|ess co||ected"

Accounts kece|vab|e
O rov|des cash to compan|es
cred|t and co||ect|on must manage and contro| the A]k through "NC NCNSLNSL" cred|t and co||ect|on po||c|es (prov|de
t|me|y accurate |nformat|on to the market|ng sa|es operat|on on the vo|ume and qua||ty of the accounts rece|vab|e
SALLS
|s the act of se|||ng a product or serv|ce |n return for money or other compensat|on
an act of comp|et|on of a commerc|a| act|v|ty
CCLLLC1ICNprocess of recover|ng amounts owed to a f|rm by |ts customers
kLLA1ICNSnI 8L1WLLN SALLS CkLDI1 AND CCLLLC1ICN
O SALLS IUNC1ICNS
1 Generate demand for products and serv|ces so|d
2 Se|| at prof|tab|e |eve|s terms and cond|t|ons
3 Cooperate and understand the task of cred|t and co||ect|on and other departments to atta|n
the common and overa|| ob[ect|ves
sa|es must subm|t honest and ob[ect|ve cred|t appra|sa|s of cred|t app||cants and d|scuss past due accounts w|th the cred|t
and co||ect|on department because "a sa|e |s not a sa|e un|ess co||ected"
CkLDI1 IUNC1ICNS
1 rotect the cred|t granted or the se||er's |nvestment |n the accounts rece|vab|e
2 Ass|st market|ng and sa|es |n co||ect|ng the cred|t granted
3 Ass|st the sa|es department |n comp|et|ng the sa|es negot|at|ons
4 1ake an ob[ect|ve |ong term v|ew of sa|es transact|ons or opportun|ty
S know the customer by open|ng and ma|nta|n|ng channe|s of persona| contact w|th them
6 8e sa|es m|nded
Causes of Conf||cts 8etween Cred|t and Sa|es Cperat|ons
CkLDI1
1 Demand for fu|| f|nanc|a| d|sc|osure requ|rements from the cred|t app||cant
2 Low or poor cred|t r|sks subm|tted by market|ng
3 Cnerous terms and cond|t|ons |mposed on prospect|ve debtors
4 1ough co||ect|on techn|ques and co||ect|on procedures on debtors
Sa|es
1 Unreasonab|e cred|t report expectat|ons from cred|t department
2 Med|um or marg|na| cred|t r|sks subm|tted by market|ng
3 Lasy cred|t terms
4 Lasy co||ect|on procedures
Consequences of the Conf||ct
1 nost|||t|es between cred|t and sa|es department
2 ower strugg|e between cred|t and sa|es personne|
3 Conf||ct|ng cred|t and co||ect|on po||c|es procedures and techn|ques
Attempts |n M|n|m|z|ng the Conf||ct
O Some compan|es try to so|ve the conf||ct by p|ac|ng the two funct|ons |n one
O rogram of cont|nuous d|a|ogue between sa|esmen and cred|t men
1IS to m|n|m|ze Conf||cts
1 Lxchange rob|ems
2 G|ve Cred|t
3 Avo|d Memos
4 8ank goodw|||
S keep your co||aborator |nformed
6 Accept respons|b|||ty for fa||ure
7 Acknow|edge suggest|ons
8 8e humb|e
9 kecogn|ze needs
10 8u||d a record
CkLDI1 AND CCLLLC1ICN DLAk1MLN1( I1S kCLL AND IMCk1ANCL)
"Natanso" s|tuat|on |n re|at|on to cred|t
In any f|rm engage |n cred|t extens|on the creat|on of cred|t and co||ect|on un|t becomes an |mportant need and |t
shou|d be expanded whenever there are |ncrease |n the compan|es' act|v|t|es
IAC1 1 Many compan|es and even |nd|v|dua| cred|tors

|arge rece|vab|es

||qu|d|ty |s affected
IAC1 2 Some are geared towards max|m|z|ng sa|es
greater prof|ts but then co||ect|on of cred|t |s p|aced |n the hands of peop|e who |ack the necessary sk|||s and
exper|ence
a no proper procedure |n the process
b too |ate for the company to rect|fy(because f|nanc|a| pos|t|on become too t|ght)
c b|ame peop|e
ko|e of C and C Department
O 1o |nsu|ate the company from be|ng v|ct|m|zed consc|ous|y or unconsc|ous|y by bad cred|t r|sk customers
O Max|m|ze prof|t and m|n|m|ze bad debt |osses thru proper cred|t eva|uat|on thru eff|c|ent and cons|stent
co||ect|on fo||ow ups
O 1he C and C dept cannot funct|on on |ts own |t needs cooperat|on of other departments as we|| as other C and C
dept of other compan|es
[ust ||ke a person no man |s an |s|and
Cred|t and Cred|t Dept can contr|bute to
1 Support to sa|es effort
2 Customer counse||ng
3 Contr|but|on to f|nance
4 1ask force ass|gnments
1nL CkLDI1 MANAGLk
1ask |f CM |s a 1op os|t|on
O Management of cred|t
O kespons|b|e for the formu|at|on of cred|t po||c|es and the adm|n|strat|on of cred|t operat|ons that w||| max|m|ze
sa|es and sa|es and prof|t m|n|m|ze |oss and ma|nta|n a sat|sfactory turnover of the company's |nvestment |n A]k
O Must have a thorough understand|ng of the company's f|nanc|a| and product|on capab|||t|es h|s sa|es department
se|||ng ab|||ty and to br|ng the money back
O Must make contr|but|on to the company's overa|| p|ann|ng