"It can be difficult to explain why a close call went against a customer," says Michael Dennis, well known credit consultant, lecturer, and credit practitioner. He offers several suggestions to help credit managers explain negative decisions.

• Take your time. "Consider all the factors before making your decision," Dennis says. This will give you the facts you need to support your decision.

• Document. "Once you've made a decision on a close call, document it," Dennis suggests. "Note what factors you considered, which were the most important, what alternatives you considered, and how you arrived at your final decision."

• Don't try to convince anyone. "It's not necessary to convince the customer or salesperson that your credit decision was correct," Dennis says. "Your responsibility is to inform people of your decision and explain why the decision was made."

• Accept anger. "From time-to-time, customers or salespeople will respond with anger," Dennis says. "When this happens, remain low-key. Responding to anger with anger may be gratifying in the short-term, but it is destructive in the long-run."

• Take responsibility. "Take personal responsibility for credit decisions, even if you only had a small part in making them," Dennis says. "It reenforces the idea that you are a decision maker. It also gives you the chance to discuss concerns. Besides, passing the buck can give the impression that you can't make the difficult credit decisions."