What is Credit Management & Its Benefits?

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What is Credit Management Its Benefits?
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What is Need of Credit Management

• Its essential to secure your business against
  late payments or potential defaults from
  customers. In fact! Setting up a procedure can
  spare you a lot of pain. If you want to maximize
  your companys profits and reduce the risk of
  extended payment terms then, you should
  definitely have commercial credit risk
  management in place.

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What is Credit Management?

• Credit management refers to the practice of
  granting and managing credit accounts of
  customers inside a company. If your business
  revolves around credit grants, then you need to
  have a system to monitor and reconcile them
  regularly. Credit management is all about setting
  up payment terms, rules of payment recovery and,
  ensuring adherence to the companys credit
  policy.

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Benefits of Credit Management
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Maintains an Optimal Cash Flow 

• Without a regular cash flow, a business cant run
  with its full force. The reason is simple -
  revenue is the key to carrying out various
  business ventures. Not keeping an eye on the
  money that you have to receive from your
  customers can get you in big trouble and even
  lock your capital.

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Safeguards Your Financial Stability 

• If you are laidback about the invoices and think
  one or two unpaid invoice doesnt make any
  difference to your business. Then you cant be
  more wrong about this as every year at least one
  company disappears in thin air due to their
  unpaid cluster of invoices. No matter how
  calculative you are in making forecasts, the
  money unpaid by your customers can get you in
  heavy repercussions.

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Helps in Keeping Cordial Relations 

• Commercial credit risk management helps in
  filtering out the best customers or clients that
  you want to further financially engage with. It
  helps you to easily weed out those customers who
  always have a problem with timely payments. You
  can pick and select customers who are
  professional in their credit approach. 

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Thank You

• Get In Touch 
• Email support_at_creditq.in 
• Website https//creditq.in