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Business book. The ultimate
resource. Controlling
credit. Controlling
credit is often a necessary practice. Policies,
procedures of the practices that guarantee that in the end payment is made. Credit
control: prevents bad
debts. Controls cash
flow. Contribute to
higher profits. Can provide
growth. Key factor in
weathering bad periods. Disadvantages: consumes
considerable staff time. Can sour
relationships with customers. 1. Assign
responsibility for credit control. 2.
Introducing credit policy. 3. Reexamine
your terms of sale. 4. Assess
credit risk. 5. Reassess
credit worthiness of existing customers. 6. Understand
the effective of bad debts. 7. Review
your billing cycle. 8. List
overdue and total indebtedness. 9. Monitor
the average length of credit. 10.
Introducing a collection procedure. Clear vision,
regular checkups, no excuses. How does the
length of credit you receive compare with the length of credit you allow. What
incentives to your customers or clients have to pay promptly. End of data. |
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