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They say knowledge is power. This is especially true for credit managers. In many companies, the only executive with detailed knowledge of credit and collections best practices is the credit manager. That makes them a valuable member of the corporate team.
It is also often the case that credit managers and their staff members came to their positions from other functions or are new to the business. They've likely been self-taught. Just to keep up with the ongoing changes in credit and collection practices, tools, and regulations credit professionals must have access to training resources outside the company for the good of the company and their own professional development.
This Credit Today Training Survey was aimed at providing insight into the type of training that is most valuable to credit departments and how this training is best delivered within budget limitations in support of training needs. The survey results show that each of these factors can vary, depending on the size and industry of the companies responding.
Credit Managers should therefore consider their own environment as they recommend training activities for their department and themselves. By comparing your current training program with those of other respondents, you can use the benchmarks from this survey to suggest to senior management where changes in current training practices are appropriate, and when additional budget support is needed.
This first installment of the survey findings delves into the types of training needed by credit executives and their organizations taking into account their prior exposure to professional training and academic background. Part 2 will then explore how training is best delivered or accessed in light of budgetary constraints and credit departmental needs.
Executive Summary
- Nearly half (48%) cited skill development as the primary training objective for their credit and collections organization, followed by professional development (29%) and personalized training for team members (23%)
- The credit department function most in need of training, by a wide margin, is the credit administration control area (59%) – Collections (19%) is a distant second.
- The need for training in Soft Skills (e.g. things like Negotiations, Communications, and Time Management) was cited most often (44%) as an organizational need, ahead of specialized knowledge about Portfolio Monitoring & Analysis (37%), Credit Fundamentals (32%), and Risk Mitigation Instruments (31%)
- In terms of training received, Collections (82%), Financial Analysis (81%), Credit Fundamentals (81%), Legal Issues (75%), and Bankruptcy (75%) topped the list
- Professional growth was the primary motivation for 73% of survey participants to participate in training, with Advancement (19%) a distant second.
- Only 24% of the credit professionals taking this survey did not have a college degree – of the 76% with degrees, nearly a third (23%) had also attained a graduate degree.
- Three out of five credit executives have a business degree, and that jumps to four out of five if you add in accounting degrees
Results
Notes: Midsized companies (revenue from $250 million to $1 billion) and Distributor/Wholesalers were the exceptions to the norm – personalized training was the top choice by roughly half of these segments.
Notes:
- Soft Skills include things like Negotiations, Communications, and Time Management– it is worth noting that skills, which foster better performance in traditional credit and collection activities, are seen as the most needed in the current environment
- It is also interesting that Portfolio Monitoring & Analysis came out ahead of more traditional topics because credit organizations have been relatively slow to assume a portfolio approach to receivables management as opposed to the traditional one-off style – risk within an AR portfolio is relative and the Covid-19 pandemic has surely illustrated this
Notes:
- Other includes the topics Project Management and Certified Expert Witness
- Soft Skills include things like Negotiations, Communications, and Time Management
- Whereas Portfolio Monitoring has become important when looking ahead, it is far down the list when past training is reviewed
Question: Please share with us your college degree(s) and associated major area of study
Question: What training would have improved your preparation as a credit and collections professional? What is needed to complete your training? Please feel free to discuss training topics as well as formats.
“Additional Credit and Collections training would have been helpful to improve my preparation for a career in the field.” - Terry R Nielson, Credit & Collections Manager, Meissner Mfg. Co., Inc.
“Orientation with an outline of the job functions, being paired with a mentor, sales and marketing training- being paired with a sales representative too. Training is ongoing and necessary to stay knowledgeable about changes. Continuous learning also gives one confidence. While there are basic principles of credit & collections, it is important to have knowledge of your specific industry. Training should also provide the credit and collections professional with an understanding of future opportunities. In order to continue to build a team of professionals, each individual should be provided with training on how to train the next credit & collections professional.” - Micherra D Marshall, Credit & Collections Manager, ASSA ABLOY Entrance Systems
“Better training of negotiation skills and debate demeanor in the handling of collections. More training in various credit funding options across domestic and international business” - Rick Clanton, Director of Credit, C R Laine Furniture Co, Inc.
“Commercial Credit/ International Credit Risk/Management Training. Advanced Excel Training. In the future, I would like more training pertaining to Risk Mitigation, Credit Scoring Models, Working from home, and how to make that an efficient and effective model for myself and the staff.” - Carlos Anderson, Credit Manager, Kravet Inc.
“I feel the basics and advanced topics are currently covered in most of the workshops, seminars, and conferences. What I would like to see is courses in how to present credit and collection information to upper management along with the data to support the information. In other words ... how to improve your presentation skills.” - Debra Layman
Credit Manager, Sauder Manufacturing Co.
“I need to take financial analysis 2 to complete my CBF but they do not have any classes online. The only way to complete this the last time I checked was to go to [the NACM] Credit Congress.” – Anonymous
“NACM offers some good training for their CBA designation and I have used that training for some of my other teams in the past; I wished something similar that offered training on Business Law, basic credit principles and Financial Statement Analysis had been available to me when I first entered the field.” - Linda M Morich, Credit Manager, U.S. Mineral Prods. Co., t/a Isolatek Int'l
“Credit Analysis, Export Credit and Effective and Successful Collections with minimal costs.” - Easton G. Kapalamula, Managing Director, Beam Debt Recoveries & Estate Agents
“Credit management principles” - Josh Poli, Credit Manager, A.R.T. Furniture, Inc.
“Credit Scoring” - Sham von Pawlak, Director of Credit & Collections, Boral Industries
“Excel” - James B Albert, Retired Senior Credit Manager, Gensco, Inc.
“I planned to be a lender and that coursework did correlate to credit extension.” - Mike Thelen, Director, Enterprise Customer Financial Services, Land O'Lakes
“Legal aspect of collection and bankruptcy discovery” - James Bob Kelechi, SME Credit Risk Analyst, Primera Africa Group
“On job training.” - Martha Ramirez, Credit Manager, International Furniture Direct
“Accounting for Credit Management, Forensic credit analysis, Risk mitigation.” - Harry Carl McLaughlin, Independent Credit Consultant, Fortis Credit Risk Management
“I am learning as I go, so it is hard to say.” - Denise Menendez, New-Line Hose & Fittings
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