Credit Reporting Structure

The credit reporting structure (shown at the bottom of the page) is notable in three ways:

1) The Credit Manager is accountable to the Finance Director, not the Sales Director

2) The Credit Manager has the same authority as the Sales Manager

3) The Underwriting Manager has the same authority as the Credit and Sales Manager

This credit reporting structure ensures the credit function has a clear route to the Managing Director without passing through sales. Sales staff cannot overtly influence credit decisions (as if they would). The Credit Manager and the Sales Manager have to work together.

The Underwriting Manager cannot be overtly influenced by sales, nor by the Credit Manager (it does happen).

However, all problem areas can be resolved at direc tor level, with a final level – Managing Direc tor – to keep the peace.

Use with:

• Credit Limits & Risk Category
• Underwriting Credit Authorities