Credit Management

Credit Management specialist Raimond Honig

The field is so comprehensive

The optimization of the money and goods flow and the reduction of financial risks. That is the definition, but the field is so comprehensive. Maybe that's why it fascinates me so much. Among many facets of business administration, all kinds of psychological aspects are also involved in the broad field of Credit Management. Working in Credit Management means being in contact with your organization, people, customers and relations. It's about behavior, communication and connection. In addition you can look at the field from multiple angles.

The Credit Manager has to deal with many aspects within the entire process of the undertaking: from order acceptance up to legal collection. Within each organization, the accents are different, but each organization has to do with legal issues when it comes to entering into an agreement, drafting and implementing terms of delivery, correctly and timely reminding of customers and calling in the judiciary to collect older claims.

In addition, it must be ensured that the internal administrative organization is in good order to make the actions clear and concrete in favor of the objectives of the organization. The results must be properly planned, recorded and reported. The business economical aspects from Planning & Control and the accountability towards the Finance Department need a solid and consistent basis. Good risk management is a must in order to assess whether the organization is not losing too much return due to operational actions.

The internal and external communication is one of the key elements within Credit Management. After all, the invoices/claims must be collected in an effective, efficient and proper way and the internal relationship with the Finance Department and in particular Sales Department should be well structured. The data streams should be adjusted in an optimum manner. It is important that the correct information is quickly available to underpin actions. Which data system is in use and how are authorizations dealt with? Good information management is the basis.

All in all there are many approaches that should be involved in the field of Credit Management. In short, the life of the Credit Manager is anything but boring and that certainly applies to a trainer / author / consultant in Credit Management.