Revealing hidden depths – by Philip King FCICM
03 May 2018
In her guest blog last week, Jules Eames shared her thoughts about the five main costs involved in offering credit. She ended her blog with these words: “Yes, credit does have a cost. But by making sure the benefits outweigh these costs, we can truly add value to the organisation we serve.”
In a future blog I plan to look at some of those benefits in more detail but, for now, I’m keen to share what credit management really is. I talk to many small businesses and, I guess unsurprisingly, they frequently look blank when I mention the words credit management. Any reference to getting paid, or ‘money in the bank’ elicits a far more positive response.
Of course, credit management involves far more than just getting money into our bank account and, rather than explain this in words, I thought I’d share the animation we produced with ITN Productions for our Credit Champions documentary project.
Credit management is a broad area; the remit starts when we are prospecting for business and ends when we have been paid or when circumstances have determined that we aren’t going to be paid as a result of insolvency. The breadth and depth of the function explains the range of skills that credit professionals demonstrate, and CICM members exemplify that breadth.
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