Third Eyes Of Enterprise Credit Risk Management

A company is a very strict financial management company, and has a complete system of customer credit risk management. Therefore, the company's bad debt rate and capital turnover have always maintained a good level. The manager of the finance department is very proud of his management. But Lu manager of the sales department does not think so: business can not be without risk. If you sit at home without sales, you will not produce any bad debts.

Lu believes that too rigid credit policy has affected the sales department's performance and caused many opportunities for the company to lose.

The sales department and the Finance Department of an enterprise seem to be born in two departments which are incompatible with fire and water. This is even more true: the finance department represents and maintains the interests of the company, while salesmen represent the interests of distributors and customers. This does not seem to be more evidence today in the case of A company.

Wenzhou B company is a local distributor of A. Although the market share and brand awareness of A in Zhejiang province are far superior to that of its competitors, sales in Wenzhou are not very warm, but lagging behind their competitors.

The local dealers have changed several times. By this year, the B company is already fourth.

A company was originally an enterprise in Zhejiang, where the market can not be rob, Lu manager gave a death order to Zhejiang provincial manager, and must change this situation within three months.

Taking advantage of competitors' quality problems, Lu manager personally sat in Wenzhou, concentrating on the sales force of the whole province, zoning and developing the terminal of Wenzhou. Lu manager also obtained preferential sales promotion policies from the company, and prepared to concentrate superior forces to recover the Wenzhou market in one fell swoop.

For a while, A's products were heavily distributed in Wenzhou terminal, but the problem was coming. As B's sales increased several times than usual, less than 10 days later, the company approved the credit limit has been used up, B company can only buy goods in cash, but it will not support one week later.

At one time, the terminal customers frequently asked for goods, but B did not have the money to continue to place orders. The B company's boss jumped on both feet. The phone call of Lu manager was blown up, and the company was asked to place several orders in order to solve the urgent problem.

In fact, Lu manager is more anxious than anyone. This action is to take him by surprise when his competitors are not responding. Now it's like half the bullet has been lost. If the competitor takes the opportunity to fight against it, will the action be wasted?

Lu manager and financial manager Zhang repeatedly coordinated, but Zhang manager did not agree to continue shipping after he put in an order. Zhang manager's reasons are very good. First, the credit policy of all the customers of the company was decided by the general manager when the sales department and the finance department jointly discussed the issue. It is not impossible to increase the credit line of B company now. But it is impossible to go through the procedure.

"Sales performance is the sales department, but the credit risk brought by it must be borne by the finance department, of course not."

This is just a subtext of what manager Zhang did not say.

Lu manager enumerated all kinds of reasons and personally guaranteed that Zhang would continue to deliver the goods, but Mr. Zhang did not buy it. A's credit control was the one vote veto system of the finance department.

Why is there a very different way of dealing with this problem between the finance department and the sales department? Zhang manager is strictly implementing the company's financial system for the sake of the company's capital security. Lu manager is making more money for the company's sales for the company. Are they not looking at the problem from the perspective of the company's interests? Why is there such a big conflict?

First: financial personnel are rational, they are basically not in touch with customers, so they have no feelings at all. Salesmen are emotional, frequent contacts with customers, influenced by customers, and people always have feelings.

Second:

It is considered that the rules and regulations of the company must be implemented in an all - out way; while salesmen think that customers are God and customers are always number one, they always try their best to solve problems for their customers.

Third: financial staff always doubt their solvency is their professional habits, while salespeople often trust customers too much.

Fourth: the most important thing is that the financial staff are concerned about the rate of receivables.

The account is due to the company's assessment of its performance, and the salesperson is assessed first by sales / market share.

How can we solve this contradiction? Is there a more objective and fair "third eye" problem in the conflicts between financial managers and sales managers from their respective interests and different problems? That is the general manager's perspective. He can stand on the higher level of the enterprise to see this problem, not only for the sales department or the finance department, but for the whole enterprise; not only consider the present of the enterprise, but also consider the future of the enterprise.

As the matter is urgent, Lu manager reported to the general manager of the company and asked for a solution.

After evaluating all the information, the general manager decided to increase the B provisional credit line by 50%. But he also listened to the advice of Zhang, asking the boss of B to make a written promise to guarantee the fixed property.

Finally, this matter has been satisfactorily resolved. A has regained its lost territory in Wenzhou market, and its market share has gone beyond its competitors.