An urgent order reaches the credit limit, sales wants to preserve the delivery date, and credit needs more information. Without an agreed exception process, the decision may depend on who answers the phone or how strongly someone argues.
A clear process gives both teams a way to move the request forward. It establishes what information is needed, who can decide, and how any temporary accommodation will be monitored.
Begin with shared commercial objectives
Sales and credit both contribute to profitable, collectible business. Their responsibilities differ, but the decision should consider the customer relationship, exposure, margin, payment record, and operational commitments together.
Discuss common sources of urgency before they become live disputes. Seasonal purchases, large initial orders, and delayed information can be anticipated through planning.
Agree that an exception is a documented decision outside the normal framework. It should not be a routine workaround for an unclear policy.
Require a concise request
The requester should identify the legal customer, proposed order, additional exposure, timing, and reason the normal facility is insufficient. Include current receivables, overdue amounts, available credit, and recent payment information.
State the commercial consequence of delay without assuming it determines the outcome. A requested delivery date matters, but does not establish the customer’s capacity to pay.
Provide evidence rather than broad assurances such as “They are a good customer.” The approver needs a record that another employee can understand later.
A hypothetical urgent order
A fictional customer has an $80,000 limit and $70,000 of defined exposure. Sales requests release of a $25,000 order, which would take exposure to $95,000. A $15,000 receipt is expected but has not been verified.
Potential responses include confirming receipt before release, approving a time-limited increase, releasing a smaller portion, requesting a different payment arrangement, or waiting for further review.
None is automatically correct. The choice depends on payment history, the evidence supporting the expected receipt, financial capacity, commercial requirements, and approval authority.
What should not happen is treating an unverified promise as cash already received or changing the limit informally without a record.
Define authority and escalation
Set approval levels for the amount and nature of the exception. Some requests may fit delegated authority; others may require a manager or a wider decision.
Identify a backup approver and realistic response expectations. A process that depends on one unavailable person will invite workarounds.
Make escalation factual: what decision is needed, what evidence is available, what remains uncertain, and when the commercial deadline occurs. Escalation should not erase the original analysis.
Make temporary conditions operational
A temporary approval should specify the additional amount, order or period covered, expiry, expected payments, and monitoring owner.
Decide how the system distinguishes the exception from the permanent limit. If the customer does not meet the condition, specify who reviews the account and what action is considered under policy.
Communicate the approved outcome to sales, order processing, and collections as relevant. An approval that remains in one manager’s inbox can be implemented incorrectly or not at all.
Use a short exception checklist
- Customer identity and current exposure.
- Requested increase or order release.
- Reason for urgency and duration.
- Payment history and supporting evidence.
- Alternatives considered.
- Approver and authority basis.
- Conditions, expiry, and follow-up owner.
Learn from outcomes
After the exception ends, review whether expected receipts arrived and whether exposure returned to the normal framework. Preserve the result alongside the original rationale.
Recurring requests may signal an outdated facility, poor demand forecasting, slow review turnaround, or a policy that does not fit the customer segment. Address the root cause rather than processing the same exception indefinitely.
Evaluate the process using turnaround, evidence quality, condition compliance, and subsequent account performance. A high approval rate or a low approval rate alone does not establish good judgment.
CMS Credit Suite documents approval management workflows, escalation, and histories of changes to credit limits and terms. Confirm how your exception requirements should be configured.
Contact Credit & Management Systems, Inc. to discuss a B2B approval process that gives sales and credit a clear route for urgent requests.