I. Credit and Collections Management Objectives
The Credit and Collections Management Process aims to optimize the management of customer payments, minimize bad debt risk, and ensure compliance with company credit policies. This process involves a series of steps that monitor and manage customer accounts, identify potential payment issues, and implement timely collections strategies. The objective is to maintain accurate and up-to-date credit information, establish effective communication with customers, and recover outstanding balances in a fair and transparent manner. By following this process, the company can improve its cash flow management, reduce financial risk, and foster long-term customer relationships built on trust and reliability. Regular reviews and updates of credit policies ensure alignment with changing market conditions and business needs.