How to Construct Credit Management

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Most customers do not pay the product or service cash. They pay the product after two month. Certainly, it will affect the company cash flow. The company should be able to manage the credit or they will bankrupt soon.

There are some factors that influence the credit, such as:

1. Term of sale. A company should set the certain conditions when they found the company. Tell to the customer that you set the condition of the payment. For example, If the customer pay before ten days, they will get 2% discount.

2. Credit analysis. The company can analyst the credit before granting a credit to the company. Some customer may be bad customer that will not pay the debt; you can check the track record of the customer like the credit score. Most people have credit score. For those people whose has no credit score, you can make a deep analysis.

3. Collection policy. The company can determine the collection policy when it becomes due. There are some efforts that the company can do to collect the receivables such as:

1. Send the delinquency letter to the customer that the

2. Make a telephone call

3. Order collector

4. Takes legal action if they still disobey your warning.

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