The Benefits of Having a Credit Manual
By Steven Kozac, Covering Credit News
 

Question: What do you think about the need to create a written credit manual?

Answer: I may be swimming upstream with this response, but I believe a credit manual is a necessity. The benefits of having a credit manual include:

• The document can be used as a reference guide and training tool.

• It can describe to desired / expected performance levels for each position

• The credit manual can include job descriptions for each position within the department

• This document can and should contain specific work instructions and operating procedures

• It should describe to credit granting and decision making authority of each position in the credit department

• It will provide insights to the credit department staff, the sales department and other readers about the role of the credit department and the constraints that it must operate under

One additional benefit is that in the process of creating and updating the credit manual issues and problems will come to light that were not previously addressed by specific policies. Therefore, the process of writing a credit manual will help close loopholes that might otherwise go unnoticed.