Module 1 - Introduction to Credit Management

Created by Amy Price, Modified on Mon, 19 Aug, 2024 at 3:00 PM by Amy Price

  • Overview of credit management process:
    • Steps involved (risk assessment, credit granting, monitoring, collection)
    • Role in business success (cash flow, profitability, customer relationships)
  • Key concepts:
    • Credit risk: The potential for loss due to a debtor's failure to repay.
    • Credit policy: Guidelines for extending credit, setting limits, and managing risk.
    • Collections: The process of recovering overdue payments.
  • Introduction to financial assessments:
    • Brief overview of financial statements (balance sheet, income statement, cash flow statement)
    • Key financial ratios (liquidity, profitability, solvency)
  • Discussion of different legal structures:
    • CIPC registration (companies) vs. sole proprietorships
  • Implications for creditworthiness and risk assessment





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