Credit professionals in construction must be able to analyze financial data and build strong relationships with customers. These competencies not only help in making informed credit decisions but also facilitate trust and cooperation with clients.
We explore these essential aspects through the experiences of D’Ann Johnson, CCE, and Janet Glover, two seasoned professionals who shared their insights with Lori J Drake, CBA, in episodes 5 and 8 of Handle Building Block Community’s Credit Talk w/ Lori.
Analytical Skills: The Backbone of Credit Management
Analytical skills are fundamental in credit management, enabling professionals to assess financial stability and make sound decisions. Janet Glover, staff accountant at Van Marcke Trade Supply, emphasizes the importance of these skills in her role.
With nearly two decades of experience, Janet started her career as a cleanup person in A/R and credit departments. Her journey across various companies in the valley gave her a rich understanding of credit processes and the significance of financial analysis.
“Credit itself is interesting. It involves looking at company backgrounds, financials, and analyzing their financials in all ways to approve, give, or deny credit,” Janet explains.
Her ability to dissect financial data and understand the nuances of company profiles has been instrumental in her role, particularly in managing the backend of credit operations. Janet’s expertise extends to writing credit manuals and setting terms and conditions, ensuring that her company maintains a robust credit policy.
D’Ann Johnson, CCE, plays a crucial role as the corporate credit and contracts manager at A-Core Concrete Cutting, ensuring the seamless operation of the company’s credit and contractual processes. Johnson emphasizes the vital importance of well-structured contracts in gaining a comprehensive insight into the company’s internal mechanisms, facilitating the fulfillment of customer expectations at the highest level.
With a diverse role that includes credit, collections, A/R, and contracts, D’Ann finds joy in the analytical aspects of her work.
“Contracts give me a deeper understanding of what we do as a company and what our customers expect from us,” she notes.
Building Strong Customer Rapport
While analytical skills form the technical backbone of credit management, building strong customer rapport is equally vital.
Janet Glover underscores the importance of connecting with customers to establish a shared understanding.
“The first thing is that I extend my hand out to the customer to make sure that we’re on the same page,” Janet shares.
Her approach helps put clients at ease, making them more willing to provide accurate and comprehensive information. This rapport facilitates smoother credit transactions and builds long-term relationships based on trust and mutual respect.
D’Ann Johnson also values the role of customer relationships in her work. Despite the high-pressure environment, especially during busy seasons, she acknowledges the support of her team and the importance of open communication.
“I have a great team, so they’re there to support me, step up, and understand my craziness when I start ranting and raving,” D’Ann humorously remarks. Her ability to maintain a positive and understanding relationship with her team and customers is a testament to her interpersonal skills.
Challenges in Balancing Responsibilities
The roles of both Janet and D’Ann illustrate the challenges inherent in credit management, particularly in balancing various responsibilities. Janet’s extensive experience managing A/R, credit, and contract aspects highlights the need for multitasking and prioritization.
“I maintain the backend of credit, like updating terms and conditions, the harder part of writing a credit manual for the company,” she explains. This multifaceted role requires a thorough understanding of credit, including the ability to analyze financial statements, assess risk, and set appropriate credit limits. Additionally, it demands strong organizational skills to manage various tasks simultaneously and the capacity to adapt to different customer situations and market conditions.
D’Ann, on the other hand, often finds herself overwhelmed during peak periods, juggling multiple contracts and credit evaluations.
“When we are in our busy season, and I get ten contracts in one day, and they all need to be done by tomorrow, that puts me under a little stress,” she admits. However, she manages to navigate these challenges effectively with her team’s support and strong organizational skills.
Career Path and Growth in Credit Management
For those aspiring to enter the field of credit management, both Janet and D’Ann offer valuable advice. Janet suggests starting in the A/R department to gain a solid foundation in credit processes.
“Start in the A/R department and work your way up. Understanding AR is crucial for determining credit for customers,” she advises. Her career trajectory, from a cleanup person to a staff accountant, showcases the growth opportunities available in this field.
D’Ann’s diverse role also highlights the importance of versatility and continuous learning. Her experience handling various aspects of credit and contracts provides a comprehensive understanding of the industry, making her a valuable asset to her company.
Analytical skills and customer rapport in credit management are indispensable skills. Janet Glover and D’Ann Johnson, CCE, have demonstrated that these competencies are crucial for making informed decisions and establishing strong, trust-based customer relationships. For those aspiring to pursue a career in credit management, focus on these skills and remain open to continuous learning, as they can lead to a rewarding and fulfilling career. Whether managing the technical aspects of credit or nurturing customer relationships, balancing these responsibilities is essential to success in this dynamic field.
Watch more Credit Talk with Lori on the Building Blocks Channel.