Académique Documents
Professionnel Documents
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Receivable
Risk
Receivable
Economy Value Cash receive in future
COMPITITON
MARKETING TOOL
BUYERS REQUIREMENT
BENEFIT S
COST
BENEFIT S
Default cost
Delinquency cost
Capital cost
Collection cost
Collection Cost
Factors
Sales Volume
=I
DECREASE =
D) Sales Volume
I(D)
+( -)
I(D)
-(+)
I(D)
-(+)
Credit information
External
Internal
Trade references
Bank references
Quantitative Qualitative
Credit Terms
Credit period
Cash discount
Effect on profit
(Positive or negative -)
Sales volume
Average collection period Bad debt expenses
+
+
+ _
Collection period