are often tasked with account setup in enterprise computer systems.
Matthew also acts as outside general counsel to credit departments
where he regularly assists in matters such as reviewing contracts, drafting contracts, negotiation and debt collection.
Grainger was one of the first companies to decentralize their credit departments
. This reduces the amount of travel necessary for customer visits; it keeps their customers within driving distance of a credit manager.
Lovorn suggested that credit departments
undergoing a merger or acquisition and switching to different software create a checklist containing tasks for each team member for each phase.
Some have distinct credit departments
that report up the chain of command outside of the sales department, while other firms have their credit department
contained within other departments, such as sales.
Fortunately, fewer CFOs, treasurers and other upper management officers view DSO as a sort of infallible and complete measurement of what's happening, notably in the credit departments
Most credit departments
will face a change in their risk management system at least once every 10 years.
The role credit departments
play in the world's economy came to the forefront following the credit crunch.
These include ensuring consistency, continuity and predictability within both sales and credit departments
. Each credit policy will be unique, so it is critical for a credit manager to evaluate his or her company's individual requirements for the extension of credit.
In smaller and mid-market credit departments
, there generally isn't a need for a fulltime credit analyst to write credit scorecards, determine accurate credit lines or properly analyze financial statements to alert management to high risk accounts.
"The sad part for many credit departments
is their best performances often won't show up," he said.
It might disappoint some to learn that the discussion of how international credit departments
measure their performance also frequently begins and ends with DSO.