Comments that make you go "Hmmm...." in Credit.

The dance between sales and credit departments is often a comedy of miscommunications and head-scratching moments. Here are some classic things people have said to credit professionals that left us all slapping our foreheads:

?

1. "Just approve the credit; they seem really nice!"

Sure, a friendly demeanor is definitely a solid financial indicator. While a positive attitude is great, we evaluate facts not personalities. We can't ignore the fact that creditworthiness is based on financial stability, not charisma.

?

2. "We need to close this deal by the end of the quarter; can’t you just speed things up?"

Because nothing says "sound financial decision" like rushing through a credit check. We’ll just wave our magic wands and make the risk disappear.

?

3. "They promised they'll pay us as soon as they get the invoice."

Promises, promises. If we had a dollar for every time we heard that, we wouldn’t need credit departments at all.

?

4. "They’ve been in business for a year; they’re solid."

Longevity doesn’t equal financial health. Many businesses can survive a year, but that doesn’t mean they’re financially stable or creditworthy.

?

5. "Their CEO drives a nice car; they must be doing well."

Financial solvency by association with a luxury vehicle, nice house or lots of equipment shows us how they spend their money not how the pay it. If only our credit checks were as simple as checking out someone's material possessions.

?

6. "Can't you bend the rules just this once? It's a big sale!"

Bending the rules is always a great idea—until it isn’t. Policies are in place for a reason, usually to prevent financial disasters.

?

7. "I already promised them the credit terms; we can’t back out now."

Great! You’ve just volunteered us for a potential financial nightmare. Can I tie the financial risk with your commissions? NO, collaborate with us, next time how about checking in before you commit?

?

8. "What’s the worst that could happen?"

Famous last words. The worst could be unpaid invoices, cash flow issues, and a bad debt write-off, just to name a few.

?

9. "Our competitors are extending them credit; we need to match that."

Following competitors blindly isn’t a strategy. We need to assess our own risks independently.

?

10."But they paid last time... eventually."

?Ah, yes. The optimism of believing "eventually" is an acceptable payment term. Our suppliers and creditors would surely understand if we adopted that policy. That "eventually" costs us while our customers use us as a bank.

?

These moments highlight the often humorous, sometimes frustrating, and always essential balancing act between making sales and managing financial risk. While sales teams focus on closing deals and driving revenue, the credit department’s role is to ensure those sales turn into actual cash flow without putting the company at undue risk. It’s a partnership that, despite the occasional forehead-slapping & laughable moments, keeps the business thriving.

?

What are some of the comments you’ve received that had you “slapping your forehead”?