Introduction
Credit risk management in a firm deals with the uncertainty on the capacity or willingness of its customers to repay on time their full outstanding commitments.
Credit and collections risks management is one of the economic and financial pillars which grants the stability of the firm through its impact on cash flow. In this aspect, it completes the circle of sales, production and service of the firm. Improvements in the credit and collections risks management will improve cash flow and customers’ satisfaction, will reduce the costs of collections and will contribute to increasing the firm’s bottom line.
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