Credit Management

Creditum - Latin word meaning "Trust"
1. Means of exchange to obtain goods.
Credit Agreement
1. National Credit Act no. 34 of 2005
  1. Credit Facility
  2. Credit Transaction
  3. Credit Guarantee
Creditworthiness
1. Buyers ability to pay
Elements of Credit
1. Cost
2. Time
3. Risk
Types of Credit
1. Consumer Credit
2. Business Credit
3. Financial Credit
4. Export Credit
Advantages of Credit
1. Establish Credit Record
  1. Finances Capital Requirements
Disadvantages of Credit
1. Costly - Interest
2. Ties up future income
Credit Policy
1. Guideline for degree of risk
  1. Credit Terms
  2. Creditworthiness
  3. Collection Policy
Credit Assessment
1. 1) Collection of Info
  1. Direct
  2. Indirect
2. 2) Analysing Info
  1. 7 C's
    1. Character
    2. Capacity
    3. Capital
      1. Financial Ratios
    4. Collateral
    5. Climate
    6. Credit History
    7. Common Sense
  2. Credit Grading/ Scoring
  3. Financial Statements
3. 3) Make Decision
Collection of Debtors
1. 1) Reminder Phase
2. Follow - up Phase
3. Drastic Phase

Resource summary

	Created by Jenna Eales almost 11 years ago