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By analyzing the credit history of a company by reviewing their payment history, the credit manager can positively affect the customer’s future purchases by contacting them and telling them because of their excellent credit history, they are eligible for a higher credit limit with your firm.
Steps for credit increases to raise sales:
- Ask your collections personnel which companies have demonstrated good consistent payment patterns.
- Have the collections person either send emails or notices to the customers indicating because they have had an excellent payment pattern with your company, their credit limit is being raised.
- If the assigned sales person has the time, have him contact the customer and let them know he asked for and received an increased credit line for them. You want to follow this plan if you have strong sales personnel in the territory. Let the sales person be the hero if you need to
- Giving the customer an increased credit line gives your firm the ability to talk to the customer, tell the buyer/ purchasing agent good news and may tell him he has available credit at your firm without asking. This may be enough to convince him to forward a higher percentage of orders your way.
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