Credit Management Essay Example | Topics and Well Written Essays - 1250 words

Credit Management - Essay ExampleThe six specific items of information those be available from a cooperative bank source are agreement details, government registration, balance stable gear details, tax return details, reserve bank registration and annual banking transactions. (Lock, 330)It should be taken into account the relevancy of marketable securities depend on the nature of those marketable securities depending on the formulated ascertained value projected. From the credit-grantors stall the best possible marketable securities would be those that are easily liquidated and low in risk. (Lock, 19)The major receipts of a customers accounts receivable that is ageing is that this would be one of the most applicable means of security possible. by from that there remains chance that if used properly this customers accounts receivable would fetch more premium than the customers receive capacity. (Lock, 176)To ascertain the consistency of the customer over a period of time the val ue of Spreading nonparallel balance sheets on comparison forms is one of the most advantageous instruments for the credit grantor. This is the best possible check of the customers credibility. (Lock, 119)There are several advantages of setting credit lines for established customers but the most of the essence(p) could be defined as mutual benefit in terms of trust obtained. The second can be treated as goodwill calculation theory that allows the client to benefit from the credit line. Thirdly it becomes important for the company to overlook few objectives as the customer is well-tried and proved. (Lock, 22)9.) You hold a $30,000.00 suppose from a customer whose regular line of credit is $10,000.00. The customer explains that this out-of-routine order will cover their needs for the undermentioned 90 days. The customer has always been prompt and owes nothing at present. Explain why you would accept this order for triple your credit line The prime reason of granting this order to the customer is that the customers credibility is well tested and proved. Thus it becomes obvious that the customer is to be trusted as a credit line is already established. However, with the assurance from the customer it could be enumerated safe to grant this order. (Lock,