Question

what are the major objectives of credit management

Answer 1

Safeguarding customer risk, settling outstanding balances and improving cash flow are three key objectives of credit management that are imperative to founding profitable success.

Safeguarding Customer Risk

Controlling expenses and ensuring that adequate care is used to make the right decisions at the right time is the most valued objective of credit management. It’s the first step; and one that must be used with as much caution as risk. It’s a true paradox that ignites the success of modern-day business.

Settlement of Outstanding Balances

Making sure that outstanding balances are settled can be challenging. This task is like the eggs to a cake. You need it to rise. Without the receipt of payment there’s no cash flow. Without cash flow, there’s no opportunity. Without opportunity, there’s no business. It needs to be done, and as a matter of priority.

Improving Cash Flow

Credit management is all about adopting the most efficient, trustworthy methods to improve cash flow. This includes utilizing reputable software programs, as well as training and development opportunities to ensure that the business continues to grow and compete with the best.

These three key objectives are used to achieve maximum results, while using empathy and integrity. After all, we’re all humans on a mission to achieve the best that we can. Credit management can help us get there.