Trade history on a customer is disclosed at an industry group meeting. The sales person of a member firm shows up at this customer's facility the next day. A supplier is sued for allegedly causing the demise of a customer's firm by refusing to grant credit. The customer had heard that trade references were instrumental in the decision. The court demanded the credit manager reveal his sources or be charged with contempt of court.
Confidentiality is the fundamental tool that allows the free flow of credit information.
Lack of professionalism in the credit function will destroy access to information to make good decisions. Support from your company comes if you have a good track record and use diplomacy. There are alternatives to revealing sensitive and potentially damaging information about customers. Thanks for your comments, Nancy. Next week, Dave Balovich will respond to Nancys comments.