Sustaining a profit-generating business can be challenging. With the recent economical crisis in most parts of the world and the tough competition amongst different companies, it can tough to stay financially stable.
Thus, companies are always on the lookout to cut on expenses and devise ways to stand out in a crowded market to generate more sales.
Here are a few ways to cut costs and improve the overall effectiveness of your credit department.
- Hire credit professionals who know their job and don’t be afraid to get people who have more experience or expertise than you do. Having the best person for the job gives you peace of mind that your company’s credit processes are in good hands. Besides, the time you save from having the right person for the role allows you to spend time on matters that require more skill, experience or decision-making.
- Be on the constant lookout for 3rd party providers that offer reasonable prices for outside services that the credit department uses or any department for that matter.
- Encourage feedback. Sometimes, the best ideas come from your staff. Leverage their experience and expertise in coming up with ways to improve your existing policies on credit control and management.
- Review and refine current credit processes and find ways to make it more efficient or less costly. For example, refining your process for credit referrals can help address disputes and negotiate delinquent accounts.
- Value your employees. Make time to train and coach your people. The impact may not be felt immediately but improved employee moral and confidence can result to improved work performance, low turnovers and better attendance rates in the long run.
Ensuring that the company’s income is greater than the expenses can be challenging. All companies face credit challenges i.e. customers not paying on time, managing debt, controlling costs associated with the company’s products and services, etc…
That’s why having an effective credit department are extremely important because they can go a long way in improving the company’s cash flows.
Save your business from cash crunches. Let us know how we can help train your credit professionals for optimized work performance.