Such ‘dangerous debts’ can seriously have an effect on the operations and profitability of a business, and so must be stored to the naked minimal. The credit management process needs to be understood and followed, with enough checks made on “creditworthiness” of latest and present prospects, and ‘credit limits’ should be set. This Program covers all these subjects, and many more of nice worth to all businesses.
Most businesses try to extend credit to clients with an excellent credit history so as to ensure cost of the goods or providers. Several factors are used as a part of the credit management process to judge and qualify a customer for the receipt of some form of business credit. This contains gathering data on the potential customer’s current financial condition, including the present credit score. The current ratio between earnings and excellent monetary obligations may even be considered. Competent management seeks to not only protect the vendor from potential losses, but also shield the customer from creating more debt obligations that can not be settled in a timely method.
The objective within a financial institution or firm …