Passing the baton: How credit leaders can bridge the knowledge gap in their teams

Good leadership is like a relay race—those who pass the baton to the next runner ensure that the whole team keeps moving forward. In the credit industry, where much of the expertise comes from hands-on experience, leaders have a responsibility to actively fill knowledge gaps and guide newer credit professionals. 

Why it matters: If not addressed, these gaps can act like dropped batons in a race, slowing momentum, causing confusion and putting the entire team behind. Passing years’ worth of expertise to newer credit professionals is a good leadership tool that builds trust and strengthens team performance. 

Experienced credit professionals bring institutional knowledge and real-world skills that can only be developed over time—something emerging credit professionals are still in the process of building. “After so long, you start to see industry trends, including the dos and don’ts of the job that you can’t put down on paper,” said Lisa Earl, credit manager at A&K Railroad Materials, Inc. (Salt Lake City, UT). 

Like a good coach, leaders recognize their team’s strengths and weaknesses and create a plan for growth. “We can make educated guesses all we want but the real impact comes from mutual feedback from both sides and staying flexible in your training plan,” said Sam Mickelson, CBF, credit manager at Multivac, Inc. (Kansas City, MO). “Effective training also requires intentional time and effort. If you don’t schedule time for development, it won’t happen.” 

Mentorship builds confidence—and competence 

Building strong customer relationships is a critical part of credit management as it helps you stay in business with that customer and ensures prompt payment. Mentorship helps less-experienced professionals develop not just technical knowledge but the soft skills needed to maintain those relationships. “Not everyone is a natural communicator, and that’s where management comes in and starts coaching,” said Joelle Miller, A/R collections manager at Pacific Coast Producers (Lodi, CA). “Having a mentor, whether inside or outside the organization, can help new credit professionals feel more confident in asking questions and seeking guidance as they grow in their roles.” 

Regular check-ins and one-on-one meetings help maintain consistent communication and track progress. “Group meetings are also important because they provide an open space,” Miller said. “In a one-on-one setting, a less experienced person might feel intimidated or hesitant to ask questions, especially when speaking with someone more established in the field.” 

Creating a safe learning environment 

Creating a safe learning environment is like laying down a steady track. When the path is clear and supportive, newer credit professionals can find their stride and run without fear of stumbling. This kind of environment encourages curiosity, invites questions and makes team members feel confident sharing their perspectives. By giving them the space to take initiative, you strengthen their confidence and help them grow into independent, capable professionals. 

“Encourage your team to join associations like NACM to learn everything they can about credit, trust their instincts and do their own research on potential new customers before extending credit,” said Earl. “If you work as a team, you will grow and you will thrive.” 

Knowledge-sharing goes both ways. For an experienced credit professional, this means being open to learning from others. “Many times, we get stuck doing something a certain way because it’s what we’ve always done,” said Mickelson. “But that doesn’t mean it’s the best way. Sometimes, a second set of eyes can offer a better approach, but only if we’re willing to listen.” By documenting their progress and asking questions along the way, you support their learning style and refine future training efforts.  

Teach the ‘why’—not just the ‘how’ 

One of the most important aspects of developing your team is explaining the why. Before they can fully take on daily responsibilities, new credit professionals need to understand the purpose of their role. “Our job as credit professionals is to execute a credit strategy aligned with our organization’s risk tolerance and overall objectives,” Mickelson said. “Understanding that alignment is critical to executing effectively, and it requires a deep understanding of the business, something that comes only with time, collaboration and hands-on experience.” 

The bottom line: A strong leader elevates the performance of a team by fostering a culture of continuous learning. When knowledge transfer is intentional, teams run farther together, transitions are seamless and long-term success becomes a shared victory. “By providing opportunities, seeking feedback, coaching and engagement, you empower individuals to focus on improvement and achieve goals,” Mickelson said.