DSO is more important than DPO
Businesses today have a strong tendency to favor Days Payable Outstanding (DPO) over their Days Sales Outstanding (DSO). While having a low DPO has many benefits for your business, such as improved relationships
Businesses today have a strong tendency to favor Days Payable Outstanding (DPO) over their Days Sales Outstanding (DSO). While having a low DPO has many benefits for your business, such as improved relationships
Credit risk management (CRM) is a process that is designed to help businesses identify and assess potential credit risks, as well as methods for mitigating or reducing those risks. This practice is especially
In today's economy, it is essential to be able to allocate credit where it is needed most. This means that businesses need to have accurate and up-to-date information about their customers' creditworthiness. While
The rapidly changing business environment in the new normal has made it more important than ever to continually monitor customer creditworthiness. Under normal conditions, many companies only reviewed customer creditworthiness on a quarterly or annual
The cost of offering credit to customers is made up of three components: Time value of money Bad debt losses Cost of credit and collection functions The cost of NOT offering credit to customers
The purpose of credit management is to provide a process for extending credit and collecting accounts receivable consistent with your company’s commercial and financial objectives. In the new normal managing credit risk and protecting
Credit limits are an essential tool for managing credit risk and protecting your company’s cash flow. Orders in excess of credit limits are automatically placed on hold for credit review. If credit limits are
Customer credit risk has become a major concern in the new normal. Even companies that were financially sound before the start of the recession are struggling to survive until the economy recovers. In this challenging
It is a challenge in the new normal to manage credit risk and protect cash flow. The rapidly changing economic environment and its impact on the credit worthiness of customers makes it imperative that
Credit management has become critical in the new normal. Many companies are delaying payments to suppliers to conserve cash because of the uncertainty. Credit rating information has become less reliable. Procedures for granting credit