credit management

Credit management is the process of overseeing and managing a company's credit policies to ensure that it effectively extends credit to customers while minimizing the risk of non-payment. This involves assessing customers’ creditworthiness, setting credit limits, monitoring accounts, and collecting payments. Effective credit management helps maintain cash flow, reduces bad debts, and can improve customer relationships by understanding their payment abilities. In essence, it's about balancing the trust extended to customers with the financial health of the business.