Synchronize credit and sales strategies.

How often do you find that a customer with an overdue account is approved for a new order? Was there a disconnect between the sales and credit departments? Or, more likely, did the sales manager, eager to book an order, ask the credit department to "cooperate" and delay collection efforts?

That's not good business. But it often happens anyway because of the absence of a specific policy on overdue accounts. There may be times when loosening the credit standards makes good sense--as a courtesy to an especially good customer and with the CFO's OK. But it never should be an informal arrangement between the sales and credit departments.