Managing trade credit to sustain sound cash flow and long-term profit
Learning objectives:
- To understand the importance of trade credit in today’s business world;
- To recognize the cost and the risks associated with trade credit;
- To mitigate the risks associated with trade credit in a profitable manner;
- To identify the best way to KYC prior to granting credit, including effective sources of information;
- To focus your resources on the four major components of the credit function – Credit Sales Approval | Invoicing | Past due Accounts Receivable Management | Communication;
- To gain and sustain competitive advantage in your market when selling on credit;
- To categorise your customers to ensure prompt payment. Thus, securing sound cash flow management;
- To develop/restructure the internal processes and procedures in order to ensure sound cash flow and long-term profit;
- To collect payments from your customers effectively using the best collection methods and practices efficiently.