collection of policies and practices
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collectionTRANSCRIPT
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COLLECTION OF POLICIES AND
PRACTICES•Credit problems
•Collection policies
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Cause of delinquent accounts
The debtor who misunderstands the credit terms
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The careless debtor
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The debtor who ignores small bits
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The debtor who is good but temporarily out of funds
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The chronic slow debtor
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The unethical unfair debtor
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The insolvent debtor
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The dishonest debtor
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Importance of prompt collection policy
Requires less working capital tied up in receivables
Reduces the loses of bad debts Decreases the probability of of expensive
legal action Reduces the costs of correspondence,
book keeping and collections Discourages poor risks from costumers Reduces loss of sales
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Principles of a sound collection policy--Bases
The creditor should inform the debtor
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The creditor should enforce the credit terms
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When an account becomes overdue, the collection machinery
shouldbe started at once
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It is useless to undertake prompt collection action
unless the follow up actions are just as prompt
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The regularity and timing of steps in collecting is important
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End of presentation!!