What is the importance of optimised credit management?

What is the importance of optimised credit management?

Turnover can only be translated into profit once your debtor has paid in full for the product or service purchased. This means that it is very important for that payment to take place within the agreed period of time.

If your debtor pays late (or perhaps not at all), it costs your business a great deal of money. For this reason, you may need to remind your debtor to pay you and – in extreme cases – you may need to resort to collecting your debt through the courts.

If your credit management system is properly organised, this will contribute to a better assessment of your credit risks as well as improved collection of debts. As a result, the company’s returns and operating resources will also increase.