There are three options for you to set up your credit management function. You may choose to set up this function in either Finance Department, Sales Department or a separate Credit Management Department. There are pros and cons for each option. No. Department Advantages Disadvantages 1 Finance Department Easy to obtain and […]
a)Collect, update and maintain all customer information from business department; b)Analyze available materials accurately and timely, and propose credit strategy; c)Manage accounts receivable; and d)Collect overdue accounts receivable.
a)Contract default risk – the seller not only loses goods and cash from sales, but has to incur collection expenses as well. b)Opportunitycost – your restricted cash on credit shall not be invested or utilized for other business activities. c)Guarantee or mortgage risk – you have to incur cost to verify the value of the […]
