Credit management is a critical function for businesses of all sizes. It refers to the processes and policies used to ensure that customers pay their obligations on time.
Effective credit management helps businesses maintain healthy cash flow, reduce financial risk, and build long-term customer relationships.
This includes assessing customer creditworthiness, setting payment terms, monitoring outstanding balances, and following up on overdue accounts in a professional manner.
Poor credit management can lead to cash shortages, increased bad debts, and operational challenges. On the other hand, structured credit practices support stability and sustainable growth.
Understanding credit management is essential for business owners, finance professionals, and anyone involved in financial decision-making.
All information provided here is for educational purposes only.
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