Business Reports

Employment Letters Index


Business Reports :


From :

K.Srinivas,
Branch Manager,
Chennai.


15th February 2000


To :

S.Peter John,
General Manager,
Mumbai.


DETERIORATION IN CREDIT CONTROL



I do agree that it is disheartening to think of collections of outstanding during the year 1999. Our efforts to collect maximum payments have not fructified due to the following reasons.


(1) Acceptance of poor Payment Terms


You will appreciate that I have taken over this branch during the beginning of 1998 at which time this branch had a long list of outstanding. My predecessor who was handling this branch for three years, for reasons best known to him, poor payment terms have been accepted from the customers. This includes credit terms. I personally guess that in an effort to boost the sales, credit terms have been accepted. Customers on their part are sluggish in settlement.


On my part, after taking over this branch, I have not been encouraging credit terms. In view of this, orders booked during my regime have resulted in full payment realisation. I will continue the same strategy throughout my tenure in this office.


(2) Lack of Motivation


To some extent, commercial officers in this branch have not been well motivated before. For doing an efficient job in credit control, they should be well motivated by way of good annual increments.


(3) Periodical Meetings with Commercial Officers


It has come to my notice that my predecessor did not have periodical meetings with the commercial officers to discuss and monitor the activity concerning collection of payments. It is very essential to have such meetings periodically. I have introduced this activity after my coming here and find the same effective.


This report explains the present scenario regarding credit control. With concerted efforts, we hope to bring down the outstanding in the next few months.


(K. SRINIVAS)

BRANCH MANAGER




Employment Letters Index


From Business Reports to HOME PAGE