TABLE OF CONTENTS
CHAPTER 4 CREDIT MANAGEMENT . ...................................................................... 45 4.1 INTRODUCTION. ........................................................................................................... 46 4.2 CREDIT MANAGEMENT..................................................................................................46 4.3 POLICY & PROCEDURES (P&P) FOR THE CREDIT MANAGER.......................................... 49 4.4 NEW CUSTOMER CREDIT...............................................................................................52 4.5 CREDIT APPLICATION....................................................................................................55 4.6 ASSIGNING A CREDIT LINE.............................................................................................57 4.7 RELATIONSHIP BETWEEN CREDIT AND SALES...............................................................59 4.8 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 CHAPTER 5 CASH APPLICATION, DEDUCTIONS, AND DISPUTE MANAGEMENT .................................................................................... 75 5.1 INTRODUCTION. .............................................................................................................76 5.2 PAYMENT TYPES AND METHODS...................................................................................76 5.3 INTERNATIONAL PAYMENTS.........................................................................................88 5.4 CASH APPLICATION.......................................................................................................90 5.5 DISPUTE MANAGEMENT................................................................................................92 5.6 BEST PRACTICES..........................................................................................................99 5.7 CONCLUSION................................................................................................................100 CHAPTER 6 COLLECTIONS ...................................................................................... 101 6.1 INTRODUCTION ...........................................................................................................102 6.2 COLLECTIONS PRIORITIZATION....................................................................................103 6.3 COLLECTION TECHNOLOGY..........................................................................................104 6.4 COLLECTIONS STAFF...................................................................................................104 6.5 COLLECTION METHODS...............................................................................................105 6.6 ADDITIONAL PRACTICES AND TOOLS..........................................................................110 6.7 COMPLIANCE. .............................................................................................................. 115 6.8 BANKRUPTCY...............................................................................................................121 6.9 BEST PRACTICE...........................................................................................................125 6.10 CONCLUSION................................................................................................................125
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