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CREDIT - Coggle Diagram
CREDIT
Credit Department
Goals
Reduction of bad debt
Stream-lined
Billing process
Increase of timely payments
Steps
Letter of credit
Sending preliminary notives and liens
Organizing
Requirements of the business determine the size and type
How a credit department is organize
Contralization and decentralization
Types of credit organization
Management responsibilty
Business organization
Types
Centralized
Benefits
Fewerchecks per customer
Reduction in number of lockboxes
Speed up reciept of payment
Decentralized
Benefits
Enhances relationship with customer
Faster response time
Management Responsibilities
Planning
Organizing
Staffing
Leadership
Control
Business Organization
Establish credit policy
Develop credit application
Keep credit records
Produce accurate invoices
Deal with past due
Measure effectiveness
5 Cs
Character
Capacity
Collateral
Capital
Condition
Building a credit team
Importance of job descriptions
Components
Position objectives
Duties and responsibilities
Authority
Relationships
Selection of personnel
Characteristics and Qualification
Manage date
Handle new situation
Act with tact
Analyze complex problem
Peesonnel qualification and cahracteristics
Make inforemed decisions
Diect the work
Handle customer
Maintain knowledge
Appraisal of personnel
Training
Employee enhancement
Types
Revolving Credit
Installment
Open Credit
History
1958
1974
1900's
Importance
Personal
Economy
Classification
Institutional
Non-institutional
Impacts
Good
Bad