Credit approval or decline (Credit decisioning) is the process a business owner or credit professional goes through when deciding to extend payment terms to a new customer. It can also be used to perhaps increase the limit of an existing customer.
Many factors must be taken into account before you can arrive at an objective decision (see the 4 C’s of Credit Granting). I emphasize the word “objective” because it can be challenging to remain objective if your boss is hungry for a new customer or is putting undue pressure on you to make an approval when every nerve in your body is screaming otherwise.
According to the Credit Institute of Canada, the Role of the Credit and Collections Department in Business is first and foremost, to Maximize Sales. However, many salespeople sometimes call the credit department the “NO” department, where all new credit applications go to die.
For Help with Credit Decisioning
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