Tip: Ten Ways to Develop a Productive Relationship With Sales

Credit and the Sales team work together well in many companies. Unfortunately, this may not always be the case. It may be that neither credit nor sales fully understand the objectives and priorities of the other. This results in misunderstandings, or even a contentious relationship.

As a Credit Manager, you can take action to reduce these sorts of misunderstandings. There is no reason that credit and sales can't work collaboratively as one team with the same overall objectives.

Ask yourself, do you think that a sales rep wants to go into a prospect or existing customer, make commitments, and then find that credit or collections become an obstacle? 

In some companies, commissions are reversed if a customer fails to pay within a defined timeframe. How do you think a sales rep, who depends on commissions to pay a mortgage, will feel if they were not notified before the commission is reversed, or the customer is put on credit hold without notice?

Here are ten things you can do to improve your department's relationship with Sales and even other stakeholders:

• Always do what is best for the company: You can't go wrong when your decisions consider solutions in line with your company's revenue, profit, and cash flow goals. Be sure Sales understands the reasons for your decision and why it is the best course of action for the company. After all, if your company absorbs losses and fails, there will be no commissions or paychecks.

• Your credit policies and procedures should be sensitive to the needs of Sales and other stakeholders: Ask for input as you develop or modify your policies. Make sure policies are in line with your company's financial and marketing objectives. Policies should project fairness, consistency, and predictability. Include an exception process for fast, properly approved exceptions when valid business decisions overriding the standard policy are needed.

• Listen first, then inform: Since sales reps are either in the field or in touch with customers on a frequent basis, they can be your eyes and ears. Listen to every word. Ask probing questions, and you may learn something valuable. A sales rep can tell you if a customer is doing well, when they may need an uptick in their credit line, or if there are danger signs requiring action and a review. 

• Remember Sales and Credit have the same overriding goal: Both the Sales and Credit teams are doing their best to develop profitable and sustaining revenue. Sales drive revenue, your department drives cash flow. Help Sales generate opportunities in line with your company's financial goals. 

• Reach out to Sales: Attend Sales Team meetings, and understand their performance goals and their pipeline of business. Present information that is valuable to them. Do a ride-along, and join them on customer calls and visits. 

• Use the magic word, “Why?” When a sales rep brings an opportunity that looks too risky on the surface, asks them why it is important to them, and the company. 

• Think like a salesperson: Credit managers sell concepts to internal stakeholders and to customers daily. When you get pushed back on a credit decision, be prepared. Listen to any objections, offer alternatives, demonstrate your value, and creative ways to say “Yes, but Here is How.” The alternatives you offer may not be what the sales rep or the customer desires, but it provides options they can consider. 

• Avoid surprises: Keep sales and other stakeholders informed. Credit decisions should not be a secret. Seek help from the sales rep, they are motivated to fix issues when they can. Provide “pre-checks” of new accounts before a sales rep makes a commitment. Let sales know when special security requirements or guarantees will be needed to approve credit. Sales reps should know before commissions are held, or if possible when a credit hold is imposed. 

• Blow your own horn: Keep track and broadcast the financial impact of exceptions your department pushed through with creative security arrangements or payment arrangements. Credit is a profit center, not a cost center.

• Meet your commitments: Do what you said you would do on time. If you have set an expectation and then do not follow through, you have just lowered and impaired your credibility.

Watch our course on Credit Teams Driving Profitable Sales | B2b Pro-Sales Training to understand how to collaborate with the sales team to boost your credit sales and profitability.