Defining Credit Management
Credit management is the process of overseeing and controlling credit extended to customers, ensuring timely payment and minimizing bad debts.
The Importance of Credit Management
Effective credit management helps businesses maintain healthy cash flow and reduces the risk of financial strain.
Credit Management Key Terms
Key terms include credit policies, credit limits, credit reports, and collection procedures.
Understanding Credit Risk
Credit risk management involves evaluating the likelihood that a borrower will default on a loan.