Are you missing valuable credit information on those you deal with?
Find out what information is available. Just complete the form below and we will contact you.
Refer Potential Members
Why should I submit potential members to NACM?
Are you tired of dealing with
credit reference requests?
Direct the requesting company info to NACM. As a member they will have access to our reports. You will get fewer credit reference requests and their information will be added to your NACM reports.
Connect With Us
 |
Oct 01 2015 Know When to Hold 'em and Know When to Fold 'em |
| When making difficult
credit decisions the lyrics to a famous song come to mind sung by Kenny Rogers . . . He said, "If you're gonna play the game, boy You gotta learn to play it right You've got to know when to hold 'em Know when to fold 'em Know when to walk away And know when to run You never count your money When you're sittin' at the table There'll be time enough for counting When the dealin's done Every gambler knows I resemble the gambler on a regular basis
in my job. Making decisions that will keep a customer in business and
ideally pay us back in full versus cutting our losses and fighting for every
last penny. As with most facets of life, this is much easier said than
done. When a customer is behind and struggling - How do we know when to
ride it out with them or pull out all the stops? The simple answer is, we
don't know. Hindsight makes it is easy to look back and know the answer
to this question but certainly not facing forward. Here are some of my
thoughts that help me when facing situations like this: * Policy and procedure - with a good policy and procedure, most of the decisions are already made before hand and have the support of the executives and general managers of the company. In this way you only deal with the exceptions to the rule. But again, if you have a methodology defined in your policy and procedures for exceptions - then those become easier as well. With this you don't have to draw the line in the sand. It has already been drawn and your responsibility is to carry out your marching orders. * Essential to making a good decision is current and relevant information - gather as much as you can. - This should include checking in with the salesman and the respective manager for additional insight to the situation - Update Commercial credit reports - what does everyone else say? - Get an update from the customers themselves - I like to visit as many distressed customers as possible personally. This helps me to pick up on the vibe of the customer. It is readily apparent if the customer still believes in themselves by the conditions of the office and the demeanor of the staff. If a personal isn't viable - use the phone. - When possible - get updated financial statements. If your customer is struggling you will see it, but you can also better determine if this cash crunch is skin deep or much more serious. - Paralysis of Analysis - Whether or not you have a lot of data - don't get so caught up that you can't make a decision. Make the best decision you can with what tools are at your (reasonably quick) disposal - Keep in mind, it isn't prudent to weed the flowerbed with an excavator (don't over think this). * Put all of these together and make the
decision. If it is a particularly large transaction - I will present it to
my boss and the respective sales manager. While I am open to feedback and
altering the decision or plan - I am primarily looking to gain support and
buy-in. If I gain this from my manager and sales-then not only am I "golden" to carry out my decision without question or static, but I up my
street cred with them. * Communicate - A negative surprise is rarely welcome. Overly communicate with sales and the customer about negative situations and decisions.
* As circumstances change, be open to negotiation with your customer and sales but be willing to hold the line if needs be. I am certainly not perfect and I would like to have a few of my credit decisions to do over again - but it is how I have learned to make better ones going forward. Even taking into consideration these suggestions - we still may not get it right. But, I firmly believe our decisions will lead to improved results. The secret to surviving in the credit field is knowing when to hold 'em and when to fold 'em.
|
