|
| |
Financial Woes - Consider a Debt Management Company
You've been working yourself silly for years and yet... you still have no savings and the pile of unpaid bills seems to grow each and every month. You have creditors breathing down your neck - calling and sending you letters so much that you're afraid to ...
Ten Tips to Make Listening Your Powerhouse Management Tool*
Listening to your people. As in life, many things that work best in business are the simplest things. In this easy to use toolkit, the benefits of listening and the key tips of how to do it best will help you manage to success... Every day we ...
Time Management in Action
It takes action on all our parts in order to achieve any goal we set. Time management is a critical element in obtaining any goal. If you do not have an action plan set up in your time management scheme, you are on the road path to meeting your goals. ...
|
|
|
|
| |
In dealings between businesses, a supplier is expected to allow a customer time to pay for the goods or services provided, but if the customer pays later than the established date, profits may be eroded. If the customer does not pay at all, then clearly a loss will be suffered on a particular transaction. Therefore, a healthy and productive credit management depends on the policies of payment for the services provided.
Credit management is more efficient when reducing the risk of non-payment through the means of a credit policy. The credit policy should deal with the procedure for approval of credit for new customers and the action to be taken to recover debts.
In obtaining an efficient credit management, after having decided on giving a credit to a costumer, it is important that terms of trade are agreed and the customer will be required to sign a document recording that customer's acceptance of the suppliers' terms of trade as part of the credit granting process.
To enhance your credit management as a supplier, you should consider charging interest on late payment of debts. The rate of interest stipulated under statute is
base rate, plus 8%.
Another important aspect for a healthy credit management is debt recovery. The key to effective debt recovery is the ability to apply the right amount of pressure at the right time. Credit management should also include a collection strategy.
As part of an elaborate credit management plan, debts could be collected by the means of a cash collection procedure involving standard letters. Prompt referral of debts to debt collectors substantially increases the chances of getting paid.
An efficient credit management policy supported by a pro-active cash collection and debt recovery strategy will reduce risk and boost profits.
Another important aspect in credit management is documenting your credit policy and ensuring that your staff understands it. Having set that policy, only make exceptions in extreme cases. Plan your credit management carefully and make sure that your methods are functional.
About the author:
This article and one-way link advertisement provided by LinkAcquire.com. So, if you want to find out more information about Credit management we suggest you to click this link
|
|
|
|
|
|
 |
Polish managers expect slow recoveryFinancial TimesAssets under management were flat in 2011, according to official figures from the Chamber of Funds and Asset Managers in Poland, ending the year at 114.4bn zlotys ($36.4bn). But, says Krzysztof Lewandowski, chief executive of Pioneer Pekao, ... |
|
