The IRMA Community
Newsletters
Research IRM
Click a keyword to search titles using our InfoSci-OnDemand powered search:
|
Managing Customer Credit to Reduce the Company's Risk and Overdue Credits
|
|
Author(s): Inês Lisboa (CARME, School of Management and Technology, Polytechnic of Leiria, Portugal), Teresa Costa (Polithecnic Institute of Setúbal, Portugal)and Nuno Teixeira (Polytechnic Institute of Setúbal, Portugal)
Copyright: 2019
Pages: 25
Source title:
Handbook of Research on Entrepreneurship, Innovation, and Internationalization
Source Author(s)/Editor(s): Nuno Miguel Teixeira (Center for Research in Business and Administration, School of Business Sciences, Polytechnic Institute of Setúbal, Portugal), Teresa Gomes da Costa (Polytechnic Institute of Setúbal, Portugal)and Inês Margarida Lisboa (Instituto Politécnico de Leiria, Portugal)
DOI: 10.4018/978-1-5225-8479-7.ch021
Purchase
|
Abstract
Most companies give credit to customers when selling products or providing services. It has advantages as more customers may be willing to negotiate with the company, but it increases the company's risk. Therefore, the company must analyze the pros and cons of giving credit. This chapter summarizes all information needed for a company to establish credit policy for each customer or group of customers. First, credit risk and customers' credit risk are explained to call the attention to the need to manage it. Then it shows how a company can manage credit to maximize its value and reduce its risk. The inputs needed to determine a customer credit policy are explained. Credit risk models are presented. And finally, a recovery method to collect overdue credits is presented. This chapter aims the help the company to solve liquidity and solvency problems and to stablish long-term relationships with customers.
Related Content
|
Rehmat Shah, Rana Yassir Hussain, Hira Irshad.
© 2024.
21 pages.
|
|
Malik Waqar Ahmed, Haroon Hussain, Hammad Hassan Mirza, Ghulam Ali Bhatti.
© 2024.
17 pages.
|
|
Burak Nedim Aktaş.
© 2024.
23 pages.
|
|
Rani Jha, Sidharth Mishra, Avinash Sharma.
© 2024.
15 pages.
|
|
Tugçe Şimşek, Ahmet Bahadır Şimşek.
© 2024.
25 pages.
|
|
George Kassar.
© 2024.
15 pages.
|
|
Andi Cudai Nur, Komal Khalid.
© 2024.
19 pages.
|
|
|