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Archive for the 'Credit Management' Category



All the topics for Credit Management are segmented into the following several section:-
GENERAL
Credit Management:An overview of Its Importance And Characteristic of a well run credit management department.
Credit Management-Costs In Extending Credit /Return on Investment on Account Receivables.
ACCOUNTING/DOCUMENTATION
Accounting Treatment & Workflow on Write Off Bad Debts and Provision for Doubtful Debts.
Sample of Documents or Agreements Used […]

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Needless to say that when debtors are not paying us on time, we need to raise our alertness level as this can ultimately lead to a future bad debt.
So what might be some of the warning signs of a future bad […]

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During the credit vetting process of granting a new credit facility or additional credit amount to the customer, you might notice from the Application Form that a particular customer belongs to a group of companies. You might find that the credit […]

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In my article on the Role of Finance, I have included a topic on Targeted Performance Management (TPM).
By setting targets to the credit personnel employee, this will directly enable the objectives of the company to be achieved. The employee himself/herself will […]

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Costs in Extending Credit:
Do you know what are the costs in extending credit? Well, let’s hope that your answers include the following:

Cost of capital tied up in debtors,
Cash discounts,
Staffing costs of sales, ledger administration,
Expenses on printing, stationery, postage, space, equipment, etc.
Debt […]



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