Despite extensive discussions and analysis of the conflict between credit and sales personnel, many companies continue to encounter this challenge. Moreover, there are still companies that actively foster and embrace this conflict, considering it beneficial and conducive to productivity.

It seems like the conflict arises due to differing priorities and objectives. Sales teams are driven to meet targets and secure new customers, sometimes compromising credit terms, while the credit department focuses on minimizing risk and ensuring timely payments.

In reality, this contradiction brings way more harm than good, encompassing various aspects that can profoundly impact how customers perceive a company’s operations and services. Some of these implications include:

Inconsistent Customer Experience – Customers may experience inconsistencies in the sales process, such as varying credit terms or delays in credit approvals. This can lead to confusion and frustration, as the sales team’s focus on closing deals quickly may result in different credit arrangements than what was initially communicated.

Delayed Decision-Making – If the conflict between sales and credit departments leads to prolonged credit evaluation processes, customers may experience delays in receiving products or services. This can negatively impact their perception of the company’s efficiency and responsiveness.

Payment Disputes – In cases where credit and sales departments have conflicting views on credit limits or payment terms, customers may find themselves caught in the middle. Disagreements over payment amounts or due dates can strain customer relationships and create an impression of disorganization or lack of clarity within the company.

Perception of Inflexibility – Customers may perceive the company as inflexible if they encounter difficulties in negotiating credit terms or resolving payment issues. If the conflict between sales and credit is visible to customers, it can erode their trust and loyalty, leading them to seek alternatives.

To mitigate these negative perceptions, companies need to ensure seamless coordination and alignment between sales and credit departments. Clear and consistent communication with customers regarding credit terms, payment processes, and any potential delays can help manage expectations and maintain a positive customer experience.

Bon Crédit 👍