On the credit side, we have the generic opinion of salespeople as fixated on making the sale at whatever cost. They seem to have tunnel vision which totally bypasses the probability of ever collecting on the account. At worse, they are seen as pushy parrots whose sole calling is to repeat the same sales pitch ad infinitum to new prospects without regard to the risks these prospects pose to profitability. At best, they are incentive driven, quota focused, glad-handers who would "give away the store" to make the sale.

Sales has a different take. They wonder if the credit department folks have a clue as to what's going on in the "real world." They see credit as obsessively focused on details that have little impact on the big picture. The credit manager seems to come up with endless ways to delay, pick apart, set up road blocks to, and eventually kill the sale. Yes, indeed, they say, credit has earned the title of sales prevention. Credit, it seems to them, is oblivious to the fact that sales drives revenues and are the life blood of the company.

Sales and Credit. Each has its own view, its own side of the story. Each is certain the other does not understand its importance or the challenges it faces. If only the other would get on board and see the larger vision (defined by their particular agenda), all would run smoothly and profitably.

The solution to this sparring match actually does lie in focusing on the larger vision. But that vision is greater than the agenda of either sales or credit - it lies in the overall success of the organization. And, for that success to be realized both departments must effectively perform their functions. Interestingly, neither can perform effectively without the other.

So, here are the cold, hard facts.

Credit has no purpose without sales. The credit function was birthed to facilitate and support sales.

But before all you salespeople start gloating over a victory, hear this. Without credit, profitable sales - the kind that consistently bring in revenue and make for a successful company - are not possible. Remember, the purpose of sales is not to meet quotas or win incentives, but to bring in the cash.

Cash only flows when accounts are paid according to terms or are collected by the credit department. The probability of collecting the cash rests squarely on the shoulders of the credit department's decision to extend credit to begin with.

Are you getting the picture - or should we say, larger vision? It's in everybody's best interest to not only let each department do its job, but to cooperate and even collaborate with each other for maximum impact on the marketplace.

The successful company relies on credit and sales working together to bring in the kind of business which results in overall growth. By agreeing on this as their mutual goal, replacing stereotypical characterizations with relationships, and adding in a good dose of humor and patience, these two functions can work together. And, possibly, even enjoy it.

Hopefully, at this point, you have some basis for considering that sales and credit are on the same side. Approach working with each other from that standpoint. One of the best places to start is by improving communication.

Here are some tips:

Share Information. Successful credit management is based on the availability of complete, accurate and timely information. This information, shared across departments in a cooperative environment, will help eliminate misunderstandings and improve the effectiveness and efficiency of both credit and sales.

The sales force should be encouraged to collect credit information at the first meeting with a new customer. By making it clear what information is required, why it is needed, and how it can effect the sale, the credit department can improve response to this request. Make sure that sales senses that you are as interested in making the sale as they are. They need to understand that the more information supplied, the greater the likelihood that you will be able to find a way to approve the account or develop a compromise solution. Also, explain how credit can secure riskier transactions that would otherwise not be approved, and how sales can help that process to benefit their bottom line.

Credit should be sure to reciprocate. For example, provide sales reps with account percentages to prevent surprises when a customer is placed on hold. Be willing to discuss any problems or delays that arise and keep sales "in the loop."

Information also needs to be shared with management. Review DSO, aging column, totals and percentages, and the underlying factors influencing those numbers. The credit department adds profits when actual write-offs are less than accrued bad-debt expense. Use the year-end report to demonstrate that this could not be accomplished without effective 'risk management.'

Invest time in education. Education can remind everyone that jobs are interactive. The sales force and credit department should be trained to recognize the needs of each department in establishing Cash, COD or Open Account customers. Credit should attend sales meetings and give presentations on various aspects of credit as well as the use of alternative arrangements when open credit is not appropriate.

Sales and Credit internships, which allow members from each department to job swap, are an effective way for each function to gain first-hand understanding of the other's value. Sales people actually get to make credit calls and credit people go on prospect calls. This "walk-a-mile in my shoes" exposure provides a better understanding of the challenges and frustrations that each goes through.

Customers need to be educated, too. When sales and credit send a 'terms letter' when a new account is established, the customer learns that credit is taken seriously. This helps the credit manager forge a stronger sales, credit and customer relationship.

Avoid hostilities. When faced with opposition to a sale or credit decision, avoid becoming angry, even when faced with a management override. If this is a challenge for you, it might help to use some form of anger defusing technique before you respond. This can be as simple as walking away from the situation until that first wave of reaction subsides. Keeping a cool head will enable everyone to analyze the situation rationally, and work together on how to best structure the sale to ensure payment.

By learning not to take criticism related to your credit decision or sale personally, you'll be able to maintain a positive attitude and an open mind that will go a long way toward working through problems and finding solutions that both departments can live with.

Lighten up. Humor can create a sense of camaraderie and approachability among individuals and departments. It can also be a powerful tool for getting a point across in a non-threatening way. An appropriate anecdote, shared in a spirit of mutual understanding, gives everyone a chuckle while addressing a problem - for instance, that chaos can be averted if other departments are alerted ahead of the sales order.

A touch of humor can also be effective in giving recognition. For example, 'friend of credit' nametags as place cards for sales reps at meetings.

Sales and Credit. Which is the more important function? As long as the wrestling match continues, both lose because the organization as a whole is adversely effected.

The winning strategy is teamwork - two vital, interdependent functions in agreement on creating an environment that gets results and benefits the organization. Credit managers and sales people are on the same team; the team that sells.

After all, your customers don't see different departments, only one company. A trained, informed and motivated team that fosters inter-departmental cooperation will help your company offer those customers top-notch service. In the end, everybody wins.