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:
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The document can be used as a reference guide and training tool.
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It can describe to desired / expected performance levels for
each position
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The credit manual can include job descriptions for each position
within the department
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This document can and should contain specific work instructions
and operating procedures
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It should describe to credit granting and decision making authority
of each position in the credit department
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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.