Archive for the ‘CREDIT MANAGEMENT/CONTROL’ Category
How Can Computerized Sales Ledger Assists In Credit Management
Earlier article describe why the need to keep proper sales ledger.
At all times, management must ensure that the finance/credit department should implement a properly run computerized sales ledger which should have the following features to assist in credit control:
 ageing of debtors by DUE DATE
on line enquires on- credit limits, individual order limits, whether the customer is ” [...]
December 31, 2009
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Why Do We Need To Keep A Proper Sales Ledger To Help In Credit Management
It is important for both accountant and credit controller to understand the importance of keepng a proper sale ledger. In fact the sales ledger is an essential source of internal information about credit performance and it should be regularly updated for new invoices, credit notes and cash received in order to:
produce accurate management information
recognize as [...]
December 29, 2009
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Collections By Call-What To Prepare For Before Calling Deliquent Debtors
Very often, when an inexperienced credit personnel called a deliquent debtor for settlement of his account, he or she will give many excuses(see earlier article on delaying tactics) hence it is very important to arm oneself with the relevant information. So what are such information?
Append beow are some information that we should have before calling [...]
December 1, 2009
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What Factors To Consider When You Increase The Credit Limit Of A Customer
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In earlier article, we have said that we need to inform the customers of their credit limits. As time pass or when the customer requests higher credit limit, what should we base on to increase or decrease his credit limit?Â
Append below are some of the major factors to [...]
November 30, 2009
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Ascertaining And Categorizing/Grouping Risk Profile Category Of Customers To Facilitate Follow Up on Customer’s Overdue Account.
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To enable an effective follow up on customer’s overdue account, the credit controller should at least try to classify or categorize the customers into the following risk categories. However, try to be too rigid as these following risk profiles can change over a period of time whether for [...]
November 30, 2009
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How To Be Proactive To Offer Alternatives For Marginal Customers Or Those Who Want To Increase The Credit Limit/Terms
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In earlier article, we have mentioned that one of the greatest contribution, credit function can offer is to facilitate the increase in sales/profit/liquidity is by thinking more proactively with sales personnel in the managing of marginal customers or those who want to increase the credit limits/terms.Â
The credit controller [...]
November 30, 2009
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What Are The Factors To Consider When Deciding On Legal Action?
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It always is easier to just to pull the firm’s delinquent customers to court when they cannot pay up. However, before doing so, it is strongly suggested that the firm should ponder upon the below factors before pursuing such actions otherwise this might ultimately lead to losing both [...]
November 29, 2009
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