department, no matter the location.
A Credit Management department has two main objectives.
- Minimising the risk taken in doing business with customers, hence minimising
the loss on sales
- Optimising the cash collection in order to reduce the working capital needed.
Obviously, these two objectives should not impact the company’s growth.
To reach these two objectives, there are two approaches; active or proactive.
- The “active” approach is primarily applicable to field customers where we are
dealing with a mass business. Here, we do not manage customers one by one,
we manage a flow. The procedures managing this flow are standard and applied
to all these customers.
- The “proactive” approach is related to significant accounts, mainly corporate,
where the idea is to anticipate and list all the potential blocking issues before
customer goes live.
Symbols used throughout the CMBP
Additional information
Name of the transaction in SAP
Priority Level (+time commitment if applicable)
Reference Group User Guide or training resource
Interface with another team
CSBP Section containing additional details
Words followed by * are defined in the Glossary