For decades, the credit department has carried a reputation as the “sales prevention” team — focused mainly on blocking bad deals rather than driving new business. But in today’s fast-moving commercial environment, credit teams are increasingly expected to show how they contribute to growth and profitability. As companies push to close out the year strong, transforming credit from a cost center into a true profit driver isn’t just possible, it’s essential.
The first step is reframing the way credit professionals talk about their role. Instead of positioning credit as purely defensive, emphasize the value you bring in enabling safe sales. Every well-structured credit decision that leads to a successful transaction adds to the company’s bottom line. That shift in mindset, paired with data-driven action, helps leadership see the credit team as a partner in profitability rather than an obstacle to sales.
One of the most effective ways to demonstrate this value is by leveraging the tools already at your disposal. Credit managers can use existing data to identify both opportunities and risks within the customer base. For example:
- Highlight top-paying customers and advocate for expanded sales opportunities where the risk is minimal.
- Spot declining payment trends early to prevent sales from overcommitting to accounts headed toward delinquency.
- Analyze Days Sales Outstanding (DSO) improvements and translate them into dollars of working capital saved.
- Quantify avoided losses by showing leadership the value of bad debt prevented through sound credit decisions.
Each of these points converts what may seem like routine “back-office” tasks into measurable, profit-focused contributions.
Another way credit can directly impact profitability before year-end is by improving cash flow through more proactive collection strategies. Even modest reductions in average payment delays can have an outsized effect on working capital and borrowing costs. For example, reducing DSO by just three days across a large portfolio could free up millions in cash. By presenting these improvements in financial terms, such as reduced interest expense or improved liquidity ratios, credit managers can clearly tie their efforts to profitability.
Equally important is the credit team’s ability to collaborate with sales and finance. When aligned, these three functions can close more profitable deals with less risk. Credit can coach sales on how to negotiate terms that balance competitiveness with cash protection, while finance can provide the capital cost perspective. Together, they create a unified message that resonates with leadership: we can drive sales growth without jeopardizing cash flow. The most successful credit teams go beyond saying “yes” or “no” — they propose alternatives that keep deals alive while protecting the company’s interests.
Finally, the year-end period provides an opportunity to showcase credit’s achievements. Before the calendar closes, credit managers should present a clear scorecard to executives, quantifying:
- The total dollar amount of receivables successfully collected.
- The reduction in past-due accounts compared to the prior year.
- The value of orders approved that contributed to year-end revenue.
- The estimated losses avoided through risk mitigation.
When positioned effectively, these metrics demonstrate that credit is not just about protecting assets, it’s about enabling profitable growth.
As 2025 winds down, leadership teams will be laser-focused on results. Credit managers who can show that their department protects revenue, accelerates cash flow, and reduces financial risk will stand out as profit enablers, not gatekeepers. By reframing the narrative, harnessing data, and highlighting year-end wins, credit professionals can secure a stronger seat at the executive table and make the case that credit truly belongs in the profit center column.
Your thoughts and comments (nseiverd@cmiweb.com) are most welcome!
Nancy Seiverd, President
CMI Credit Mediators, Inc.
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