Even with the best of intentions, credit professionals will still make mistakes. This is the price of doing business sometimes, but here are 7 mistakes that can be easily avoided with a little training and self discipline.
Mistake number 1:
Lack of a healthy dose of skepticism. Some of the best credit professionals rarely believe their customers. This is not a knock against their customers or a sign of trust issues. It is simply part of their job to question everything in order to make the best decision possible.
Mistake number 2:
With that being said, mistake number two is failing to realize risk is part of the game. Even if you question everything, extending credit is not an exact science. You will never know for certain if your customer will pay. Sometimes the only way to make money is to take calculated risk.
Mistake Number 3:
Failure to see the warning signs. Keep your eyes and ears open for the flags that say â€˜Troubleâ€™.
Mistake Number 4:
Settling for the customers proposed payment plan. Negotiation is almostÂ always an option.
Mistake Number 5:
Failure to view time as the enemy.Â The more time that passes, the harder it will be to collect. Sometimes you have to know when to give up and turn the account over to collections
Mistake Number 6:
Accepting the customer at their word. While its great to hear the customer say they are going to pay, it is even better to get that in writing.
Mistake Number 7:
Assuming that your company is the only company your customer owes money to. In many cases this customer may be receiving multiple phones calls a day about their outstanding credit. You need to make yourself noticed in this crowd.
What are some mistakes you see your credit professionals making?