Over the course of this summer I have had many opportunities to participate in projects large and small. From standardizing procedures for what would be mundane tasks for some, to tackling larger questions like how to take a large corporation “paperless”. Without a doubt all of these thought stimulating projects have been interesting and challenging in their own rights, but my favorite to date has to be the creation and administration of a credit term program for our company’s large and loyal customers.
The initial hurdle was that many of our customers have monthly and seasonal fluctuations in cash flow. As a firm that has historically only accepted cash prior to shipping products this meant that any given customer fell pray to their bank account at the time of purchase, even if later that month they knew their balances would increase. This mutual problem, customers not being able to buy, and our firm not being able to push as much product could be solved in a beneficial way to both parties through the establishment of credit terms.
Since our firm is not a bank and we would not be charging interest we had to be careful about who we would sell parts on credit, and on how much credit. Using partially made application templates it was my job to complete the templates and issue them to potential term limit customers. Upon receipt I would reach out to both their trade references and bank references to confirm their credit worthiness. If both checked out I would look at their average monthly sales over the past 18 months and provide a range of recommendations for credit based on their average plus a given percent to our Director of Finance. A month later those customers who were approved have spent more on average and all paid back on time. It is very rewarding to know I played a part in increasing business at the firm – all the while having fun doing it.