Making a sale is a great feeling, but if it is on unfavorable or unsustainable credit terms it will ultimately cost you time and money in the long run. We too often hear stories of sales pushing for extending a risky amount of credit. Taking risk has its place in the credit process, but these should be informed risks that take both negative and positive outcomes into account. This is why we recommend that all salespeople have at least some understanding of the credit and collection process.

Communication is key to minimizing disagreements

Most of these disagreements stem from a lack of understanding or appreciation for one another ’s job. Sales should point out all the reasons the account is worth taking the risk but also appreciate the knowledge and experience the credit department has had with
similar risks.

Getting caught up in making the next sale

This is understandable as their primary job is sales, but seeing the bigger picture can be equally as important. By forcing them to see another side of the business, they may gain a greater appreciation for the process. It shows them that their decisions will have lasting effects that other people will have to deal with.

Potential Improvements

By having your salespeople work closely with those responsible for collections, you open up the possibility of streamlining the process. Collectors may actually have suggestions for salespeople. Since they are the ones constantly seeing what types of customers do not pay, they may be able to offer some insight that salespeople can later use.
Understanding the collection process does not mean that all salespeople need to know how to collect debt. It means they should appreciate and understand the work collectors do. It may not show any immediate benefits, but more well-informed salespeople are always a benefit to a company in the long run.