How shall I setup our credit management function?

There are three options for you to set up your credit management function. You may choose to set up this function in either Finance Department, Sales Department or a separate Credit Management Department. There are pros and cons for each option. No. Department Advantages Disadvantages   1   Finance Department   Easy to obtain and […]

What is the framework of audit in China?

What are the duties of credit management department?

a)Collect, update and maintain all customer information from business department; b)Analyze available materials accurately and timely, and propose credit strategy; c)Manage accounts receivable; and d)Collect overdue accounts receivable.

What are credit risks and costs as compare to cash sales?

a)Contract default risk – the seller not only loses goods and cash from sales, but has to incur collection expenses as well. b)Opportunitycost – your restricted cash on credit shall not be invested or utilized for other business activities. c)Guarantee or mortgage risk – you have to incur cost to verify the value of the […]