Credit Administration- Topics and Descriptions

Credit Policy
       Skill/Knowledge Level - Advanced
This is where it all begins. Policy is the general course of action developed for recurring situations, designed to achieve established objectives. Credit policies establish a framework or guide for consistent credit decisions directed toward attaining the goal established by the company for the credit function.

Organizing the Credit and Customer Receivable Management Function
       Skill/Knowledge Level - Advanced
Emphasis on the job to be done is the essential consideration in making the proper assignment of personnel to positions in the credit and A/R management areas. The basic tools for accomplishing this are the job analysis and job description.

Planning Within Your Organization
       Skill/Knowledge Level - Advanced
As the prelude to developing a strategic plan, it is desirable to clearly identify the status, objectives and strategies of an existing operation. Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived strengths, weaknesses, threats and opportunities.

Improving Your Leadership Skills
       Skill/Knowledge Level - Advanced
Organizational issues can be a leaders nightmare while exemplary leadership and supervisory skills are critical in today's business environment. Many supervisors fail not because of limitations on their own general ability; but on their inability to delegate, listen, plan, motivate, discipline and empower.

Identifying Internal Customers and Measuring Their Satisfaction
       Skill/Knowledge Level - Advanced
Satisfying customers could be described as a company's ability to generate genuine teamwork among all departments in the organization. After obtaining a better understanding of the needs and expectations of internal customers through survey results, your credit operation should be equipped to focus on the performance areas that need to be improved to better satisfy the internal customer and achieve superior customer service.

A Self-Examination of Your Credit and Accounts Receivable Operation
       Skill/Knowledge Level - Advanced
Credit executives may use the following checklist to gain a preliminary snapshot of their overall satisfaction with the condition of their own credit and accounts receivable function. The questions are structured to encourage concise responses, while at the same time, providing for an opportunity to recognize conditions or methods that could be reevaluated for improved performance.

Performance Measures for Credit, Collections and Accounts Receivable
       Skill/Knowledge Level - Core
Using valid measures of performance is critical no matter what you are trying to measure. What makes a measure valid to you should be its consistent and routine use and it should be based on easily understood and readily attainable data. What is a valid measure for one organization may not suit another. The challenge is to understand the individual measures and use them appropriately.

Utilizing Collection Agencies and Attorneys in the Collection Process
       Skill/Knowledge Level - Advanced
When the marginal cost of collection exceeds the marginal benefit, it is time to employ a third party method of collection. Understanding what is required of you to engage this service will help save you money, time and aggravation.

Credit Information and Accounts Receivable Systems
       Skill/Knowledge Level - Advanced
The credit and accounts receivable module of a company's business system allows the application and tracking of receivables and collection activity. The system should allow important information to be stored for an unlimited number of customers and transactions and should accommodate efficient processing of customer payment and adjustments.

Estimating Uncollectible Accounts
       Skill/Knowledge Level - Advanced
While it is highly probable that some accounts will prove uncollectible and the dollar amount can be reasonably estimated, estimates of bad debt expense should be made and recorded in the period in which the sale takes place. Two methods of accounting for uncollectible accounts are used in practice - the allowance method and the direct write-off method.

Sample Procedure for Letter of Credit Administration
       Skill/Knowledge Level - Advanced
Strict requirements for the procurement of a Letters of Credit from a customer must be established and maintained to minimize the risk of loss associated with customers trading under these terms.

Supplier Trade Information, Part I
       Skill/Knowledge Level - Core
Credit data must not be released to unauthorized companies, agencies and others; and importantly, it must be kept confidential within you own organization.
Supplier Trade Information, Part II - Sample Trade Reference Policy
       Skill/Knowledge Level - Advanced
A policy, as displayed, should be established to meet your organization's requirements as to the extent and nature of the information divulged in routine trade credit references.

Building an Outsourcing Model
An outsourcing strategy by the Credit Research Foundation
       Skill/Knowledge Level - Advanced
This text gives an overview of getting started in an outsourcing initiative. It is a simple but comprehensive outline marking the various steps to consider.

Unclaimed Property - a Creditor's Responsibility
       Skill/Knowledge Level - Advanced
Each month, millions of dollars legitimately pass to states from uncashed corporate checks, not to mention forgotten stocks, insurance policies, deposits left at utilities, even items in safe-deposit boxes. States are sitting on $11.5 billion and adding $2.5 billion each year. One challenge facing companies is to get the money represented by the checks before state government officials do. Therefore, the subject of the administration of credit balances on customer accounts is worthy of your attention.

Job Interviewer Techniques and Script
       Skill/Knowledge Level - Advanced
As a manager, hiring and firing are some of the most troublesome tasks that must be performed. After you have selected the applicants you wish to meet with, it pays to plan the interview. Having a fixed agenda, knowing what questions you will ask, and what information you will provide, can speed the process and reduce the time you have to spend with each candidate.

Commonly Used Forms
       Skill/Knowledge Level - Core
This section provides numerous forms used by credit professionals in their daily routine. While these forms are presented as a basic guide, the user should exercise caution. Always have an attorney review any legal document so that they feel confident if the document becomes an instrument in litigation. These documents are designed as a starting point and may require modification to fit your specific needs. The Credit Research Foundation does not guarantee the success of any form in this section, and therefore assumes no responsibility or liability for their use.