ARS.2 E-Textbook

CHAPTER 4 CREDIT MANAGEMENT

4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8

Introduction.................................................................................... 46 Credit Management........................................................................46 Policy & Procedures (P&P) for the Credit Manager...........................49 New Customer Credit.....................................................................52 Credit Application...........................................................................55 Assigning a Credit Line...................................................................57 Relationship Between Credit and Sales...........................................59 Resources for Credit Managers and the Customer Master File.........62

4.9 Financial Statement Analysis..........................................................63 4.10 Internal Credit Score.......................................................................65 4.11 Terms and Payment Methods.........................................................67 4.12 New Customer Acceptance Letter...................................................70 4.13 Credit and Existing Customers........................................................71 4.14 Metrics..........................................................................................72 4.15 Best Practice Summary..................................................................73

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