Credit Control is a systematic approach used by organizations to ensure that outstanding debts are paid within a reasonable period. It involves establishing credit policies, assessing credit ratings of clients, and managing overdue accounts.
A comprehensive overview of credit policy, its importance, components, and strategic implications for businesses in determining credit terms for customers.
The Collection Ratio, also known as the average collection period, measures how efficient a company is at converting its accounts receivable into cash. This metric is essential for managing cash flow and assessing the effectiveness of credit policies.
