Best answer: What is credit control management?

What is credit control and why is it important?

Credit Control is the system used by a business to make certain that it gives credit only to customers who are able to pay, and that customers pay on time. It is a critical part of a well-managed business that will help reduce bad debts and improve the cash flow in your business.

What is the main purpose of credit control?

Credit control ensures that only prospective customers who have a good credit history of making their debt repayments are preferred. This will ensure that the company will have enough cash flow and liquidity to maintain its operations.

What is CRR and SLR?

CRR or cash reserve ratio is the minimum proportion / percentage of a bank’s deposits to be held in the form of cash. … SLR or statutory liquidity ratio is the minimum percentage of deposits that a bank has to maintain in form of gold, cash or other approved securities.

How do you manage credit management?

Here are seven such credit management techniques to consider.

  1. Perform regular credit checks. …
  2. Tighten credit terms for selective customers. …
  3. Send invoices electronically. …
  4. Diarise courtesy calls. …
  5. Invest in training. …
  6. Prioritise invoices. …
  7. Use a debt collection agency.

What is good credit control?

Good credit control is all about building strong relationships with customers and creating a rapport based on trust and mutual respect. Having to navigate through difficult conversations, answering complex queries and assessing risk is all part of the day to day job of a credit controller.

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