Credit Management

The term “credit management” is used for recognition of accounting functions. In other words, it is the activities of people directed on check of applicants before crediting. The manager traces acceptance and registration of not paid bills, collects information, is engaged in verification of client accounts and helps in solution of conflict situations. Credit management is extremely necessary for successful financial business.

The most important function of credit management is a most exact and objective assessment of creditworthiness of the client. Especially it is necessary if the company plans to raise a limit of credit lines and renewable credits for some category of the clients. A good manager should develop criteria by which job seekers will be estimated; and to determine an optimum general credit line for such clients.

Collection of information which is necessary for determination of the current financial status of the client includes determination of a ratio between the incomes and not fulfilled financial liabilities to the bank. In fact, credit management by its activities protects not only the bank, but also the client because helps him not to assume large debt obligations which he won’t be able to execute in fixed terms.

Also, timely provision of information, billings and SMS notification is a function of this subdivision to help clients to fulfill timely financial liabilities. For example, the period of delivery of the account shall be optimum that on the one hand the client wouldn’t “shelve it “, and on the other, he had enough time for its payment or communications with bank for the solution of matters of argument.

Such service allows all people involved in process to consider and resolve the issue. Therefore, it is profitable to all participants.

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