credit management

Credit management is the process of granting credit, setting the terms on which it is granted, recovering this credit when it is due, and ensuring compliance with company credit policy, among other credit related functions. This task is often performed by a credit manager who is a person employed by an organization to manage the credit department and make decisions concerning credit limits, acceptable levels of risk, terms of payment and enforcement actions with their customers. Key stages of credit management include credit assessment (with credit rating evaluation), decision-making, limit setting, portfolio monitoring, collection activities, and performance reporting. The goal within a bank or company, in controlling credit, is to improve revenues and profit by facilitating sales and red...