The primary objectives of credit management are to safeguard customer risk, settle balances and spread the cash culture throughout the company.
So can companies stop lending money to their customers?
If they want to establish a real competitive advantage then it’s important to improve cash flow by managing A/R outstandings. Companies remain responsible for their A/R outstandings, follow-ups, and financial and social consequences.
The challenges faced by credit management therefore revolve around generating cash flow, minimising customer payment delays and resolving disputed invoices as quickly as possible.