WRCC The Art of Credit Management

1. ER$ Consulting Services In Collaboration with CMA Presents The Art of Credit Management October 19, 2007 Las Vegas

2. By Eddy A. Sumar, MBA, CCE, CICE A Fundamental Checklist for the Success of Every Credit Professional Construct Your Checklist! Gather The Ingredients!

4. Define Credit

5. Credit comes from the Latin word “credere,” which means trust. It is a mutual trust between the grantor and recipient of the credit. It involves a great deal of trust and confidence in the ability , willingness and character of a “debtor” to deliver on its promises to the “creditor,” according to agreed upon terms. Credit also implies a reciprocal trust that the creditor will deliver what was contracted or agreed upon. Thus, credit is “a cooperative function between seller and buyer or between creditor and debtor.

8. Know Your Vision Your Goals

9. Company Vision--Goals Your Dept Vision--Goals Credit and Sales—One Team Credit is a Sales & Marketing Tool Credit Department becomes a Center for Client Services Vision

10. Understand Your Mission

12. Understand Your Company Culture

14. Construct Your Policies & Procedures

17. Chart the Process

21. Know the legal & Regulatory Environment

24. Master the Cs

25. Master the Matrix Know Your Customer---Character Choose The Path Willing Unable Able Unwilling

26. Master the Matrix Know Thy Customer---Character Choose The Path Willing Unable Able Unwilling

27. Master the Matrix [Sales focus] Classify your Customer---Character Willing Unable Able Pursue!!! Unwilling Find Deal Enhancers & Enablers Work on Desire and Willingness Abandon The Prospect!!!

28. Master the Matrix [Credit focus] Classify your Customer---Character Willing Unable Able Approve!!! Unwilling Think Outside The Box Seek Alternatives Work the Deal Protect Your Transaction Reject This Applicant!!!

29. Master the Matrix [Collection Focus] Classify your Customer---Character Willing Unable Able Great!!! Unwilling Work With Your Customer Pursue Vigorously Third Party Involvement Write-Off Cancel Don’t Waste your time

30. Master the 18 basic Cs Of Domestic Credit

32. 4. Collateral -- guarantees 5. Conditions -- business economic, political industry

33. 6. Computers -- technological state 7. Common Sense 8. Credit Insurance

40. “ We make a living by what we get, we make a life by what we give .” Sir Winston Churchill

41. ERS Consulting Services Eddy Sumar, MBA, CCE, CICE, CEW 7841 Leucite Avenue Rancho Cucamonga, CA. 91730 909-481-9869 [email_address] Thank You!