The only way that a credit department can achieve success is
through developing and implementing an efficient and
effective credit information management system which
satisfies the credit objectives of the particular
Credit managers need to know WHEN, HOW and WHAT
actions may need to be taken at any instance, to the benefit
of their own organisations in order to maintain sound
business relationship with their clients, whilst securing
sound cash flow and improve profit.
The credit information management system, however, should
be reliable, accurate, relevant to what it is needed, and
provide up-to-date information which should trigger and help
credit mangers to act proactively.
There is also the element of the cost associated with the
system, that should be considered both to implement and to
maintain such a system.
The main aim of the Malta Association of Credit
Management (MACM) is to maximise its services offered
to its members. Amongst other services, it provides the
service of daily information sharing between peer groups at
the least possible cost to its members based on trust,
co-operation, and reciprocity with the primary aim being
that to develop a positive credit environment in the Maltese
MACM serves as an effective and efficient credit
management information system to its members, and provides
relevant data and information which the credit managers need
in order to act proactively. Credit information regarding
defaulting debtors is lawfully exchanged between the members
of the Association on a daily basis to ensure that the
information provided is always up-to-date and relevant.
MACM also provides valuable data, pertaining to the
managing of debtors that is available to the public from
other sources, such as the Law Courts, The Registry of
Companies and other official sources that help creditors
identify clearly their (prospective) debtors.
Being a member of this Association, the credit manager
has also the opportunity to meet and discuss credit issues
with his peer group during the Credit Industry Group
Meetings organised periodically by the Association. Thus,
his decision making will be more effective, less risky and
technically more profitable to his company.
Credit defaulters and fraudsters are common clients to
the suppliers coming from the same industry or market, and
the best way to be informed of any early ‘warning signs’ is
undoubtfully by forming part of a credit industry group.
This system has been proved successful in various countries
and it is also leaving positive results within the Maltese
business community through MACM membership.
The credit department does more than just crunch numbers
and make collection calls. The credit department is becoming
a more integrated business unit within the business
organisation. It determines the level of cash flow of the
organisation, and to an extent, the profitability of the
whole organisation especially in Malta where credit
facilities were easily granted. Credit decisions will be
taken more wisely and professionally when the internal and
external business environmental factors are taken into
consideration. The only way to make effective, profitable
and competitive credit decisions, as well as to reduce risks
associated to credit is by basing these decisions on
accurate and timely information.