This is the activity aimed at serving the dual purpose of increasing sales revenue by extending credit to customers who are deemed a good credit risk and minimising the risk of loss from bad debts by restricting credit granted to customers who have a poor credit score.
Management of the debtor ledger is an important function as outstanding debt represents a lock up of working capital. Strong techniques of debt management will reduce the risk of late payment and possible bad debt. A strong and pro-active system will project an image of being in control of the business so that customers understand and respect the policies of debt collection and credit periods that have been adopted.
Firman Financial Solutions can ensure that the sales ledger and credit control systems are robust and managed effectively. Our part-time credit controller will ensure the sales ledger is managed effectively.