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NATURE CREDIT - Coggle Diagram
NATURE CREDIT
Importance of Credit
Save on interest and fees
Manage your cash flow
Better credit card rewards
Emergency fund backup plan
Avoid utility deposits
Avoid and limit financial fraud
Characteristics
Capacity
Capital
Character
Colateral
Condition
Classifications
Installment
Revolving
Open
According to Purpose
Real Estate Credit
Industrial Credit
Export Credit
Agricultural Credit
Commodity loans
Commercial Credit
According to Maturity
Short-term Credit
Midterm Credit
Long-term Credit
Impacts
Credit Mix
New credit
Credit history length
Amount owend
CREDIT AND COLLECTION DEPARTMENT
Credit and Collection Department
Relationship of Credit Department and Credit Policy
The credit department is tasked with making sure that those procedures are complied with
Building a Credit Department Team
Importance of Job discription
Selection of personnel
Appraisal of Personnel
Training
Employee Enhancement
Organizing the Credit Card Department
Types of Credit Organizations
Centralized
credit controlled and administered at a headquarters office
Benifits of Centralization
Speed up reciept of payments
Fewer checks per customer
Reduction on number of lockboxes
Decentralized
Credit controlled at headquarters but administered from decentralized location
Benifits of decentralization
Enhance relationship with customers
Faster response time
Management Responsibilities
Cetralization and Decentralization
The requirements of the business determine the size and type of credit department
How the credit department is organized
Business organizations
Business Organizations
Deals with past due and delinquent accounts
Keep credit records
Establish credit policy
Develop credit application
Produced accurate invoices
Measure effectiveness performance
Goals of a Credit Department
The increase of timely payments
The reduction of the debt
Importance of Job Discriptions
Selection of Personnel Characteristics and Qualifications
Manage Data
Make informed decisions
Personnel characteristics and qualifications
Handle new situations
Act with tact, diplomacy, emotional stability
Analyze complex problems
Direct the work of the employees effectively
Employee Enhancement
Continuing Education
Training options for Small credit department
Appraisal Personnel
Review of how this expectations are met
Acquired and maintain required job knowledge
Consideration in a sound training program
Handle customer and internal relations diplomatically and decisively
Relationships
Authority
Duties and Responsibilities
Position objective
First departments which become needed as revenue grows