UK Companies Taking High Credit Risks To Meet Sales Targets

Fifty-six per cent of UK financial directors believe that their organisation’s sales team is willing to accept too many orders from higher credit risk customers to hit steep sales targets, according to a new report by GERLING NCM. The report, based on the findings of a discussion forum hosted by GERLING NCM, claims that 87 per cent of UK businesses agree that maintaining high margins is one of their top priorities. This emphasis on revenue growth, however, is putting greater pressure on the sales team to achieve sometimes unrealistic sales targets, therefore taking greater risks and not working closely enough with their credit managers. The report noted that setting high sales targets in a bid to survive and grow in a difficult economic climate could actually contribute to a company’s downfall.

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