CHAPTER 1 : OVERVIEW OF CREDIT MANAGEMENT (BORROWERS ABILITY TO MAKE A…
CHAPTER 1 : OVERVIEW OF CREDIT MANAGEMENT
:+1::skin-tone-2: The process of monitoring and collecting payment from customers.
:+1::skin-tone-2:: Credit score is determined by customer's credit hsitory.
:+1::skin-tone-2: Its very important to have a good credit mgt for efficient cash flow.
3 IMPORTANT CREDIT MANAGEMENT PROCESS
ollecting the cash amount that are past due , but have not yet been settled.
eviewing credit worthiness and deciding whether or not yet been settled .
onitoring amount that are not yet due.
IMPORTANT OF CREDIT MANAGEMENT IN 3 DIFFERENT PERSPECTIVE
:email: INTERNATIONAL FINANCIAL MGT
:email: BANKING SECTOR & INDUSTRY
FACTORS AFFECTING CREDIT MGT
:no_entry: Goverment Regulations
:no_entry: The state of economy
:no_entry: Borrowing cost
BORROWERS ABILITY TO MAKE A PAYMENT
:warning: Interest Rate
:warning: Outstanding debt
:warning: Credit History
FUNCTION OF CREDIT MANAGER
:smiley: setting credit-rating criteria
:smiley: Determine credit rating
:smiley: Maintaining strong cash flow
:smiley: Controlling bad debt expose and expenses
ADVANTAGE OF HAVING GOOD CREDIT
:checkered_flag: Low interest rate on credit loan
:checkered_flag: More negotianing power
:checkered_flag: Bragging right
:checkered_flag: Get approved for higher limit
:checkered_flag: Avoid securities deposits on utilities .
Determine credit worthiness of customer, before credit granted/ extended.
Continuesly review the credit rating of existing client
Apply a strict review of authorization and communications process of granting credit limit and terms
Sending voice and allocate payment to outstanding payment.
Credit hold if each credit limit and follow up collection.