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The Association of Credit Professionals

The ACP Approvement Framework

ACP Accreditation - Improvement Framework

ACP Accreditation is a business improvement tool designed to recognize and improve the Credit Management performance of your business.

Every Credit Manager knows that a sale is a gift, and potential bad debt, until the customer has made payment in full. And even though we generally have a bad debt KPI, we also know that the role of Credit Management is not to minimise bad debt but to maximise profitability. And while credit management and other means of debt control can be learned from printed materials such as books and magazines, among others or from online financial experts, the correct processes are essential. Getting tips and ideas from professional organisations such as ACP may serve as a guarantee. At the same time we must be thinking about the changing environment and planning for the future of our business.

The framework facilitates developing these processes by considering three key business cycles:

  • Credit Management Processes;
  • Continuous Improvement Processes;
  • People Development.

The core Credit Management process encompasses the full customer life cycle process from Sales through Service and Product Delivery to Debt Management. It recognises acquisition as a key element to the Credit Management process and the impact policies can have on Customer Service, Customer Retention and Query Resolution.

The core process is then cocooned within your Continuous Improvement. Thinking about the future and your vision for the department leads to assessing opportunities in the market place and selecting the best path to deliver your vision. This then needs implementing and measuring to assess its impact.

Finally, the performance of Credit Management can only be as good as the people involved. Are jobs clearly defined and are jobholders current ability measured against the requirements of the job? What is the training and development process to ensure they reach the desired level and how do you ensure succession is in place for the future?