European Credit Management Guide

Chapter 5 - Minimum Requirements

Current surveys confirm that an insufficiently executed credit management is one of the main reasons for the insolvency of companies. In the reverse consequence it is shown that the credit management contributes actively to the maintenance of the company and therefore has to take a duly status within the corporate management.

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Chapter 6 - Customer Focus and Credit Management

Customer focus and credit management – just five words, four of them significant standing alone, but of paramount importance when taken together to make up the five. They should be taken together, because as important as they may be, each in its own right, not to recognise the value, significance and impact of the whole misses the point entirely.

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Chapter 9 - Incoterms

International business brings along some additional complexity in terms of costs and risk. Who is responsible for the costs of handling and transport of goods, and who covers the risk? There are many possible combinations, and uncertainty may be the result. The correct terms have to be used in the contract between seller and buyer, where a small difference in wording can have a huge impact on the result of a transaction.

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Chapter 3 - Risk Assessment

No credit manager ever takes anything at face value – it is part of his or her role to look behind the obvious, verify the facts and take informed decisions based upon careful analysis of the results. The impressive premises, complete with the fish tank in the reception area and the flagpoles in the car park, may hide a company with severe financial problems, weak cash flow and a reputation for failing to pay suppliers.

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Chapter 1 - The Credit Policy

The granting of trade credit is a powerful selling aid, and is a fundamental foundation upon which all trading relationships are built. Both seller and buyer gain advantage from credit facilities, but the risk of slow or non payment is borne by the seller – risk in the form of non payment, and cost in the form of the interest expense incurred from the date of the sale to receipt of the funds.

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Chapter 8 - Collections (by Atradius)

We are extremely proud to bring you the latest edition of the International Debt Collections Handbook. Released for the first time in 2008, this edition is brought to you with the addition of two new countries - Finland and Bulgaria. The version you hold in your hands today is now the 7th edition.

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Chapter 2 - The Invoice

Whether it is for the supply of goods or for the provision of services (or indeed for both), the purpose of an invoice is twofold: it acts as an official record of that sale to the customer and in effect is most often also the very first request for payment made to that customer. Accuracy and promptness are vital on both counts. As a true record of the sale, the invoice must be correct in every aspect, and in order to ensure payment on due date, it should be issued without delay to the customer.

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