University Of Finance And Administration
Faculty Of Economic Studies
Business Management And Corporate Finance
Field of Study: Trade Management
Accounts Receivable Management
summer semester 2016
Receivables can be defined as a company's right to payment of an amount of money from the debtors, which clearly belong among the assets. The assets can be divided into current and long term by the expected maturity at the time of their creation.
Receivables are often created from trading - for the delivery of our products, goods or services on the basis of the document, that is usually called invoice, which is issued among the traders.…show more content… The premium amount is determined as a percentage of turnover.
4. Preventive measures
The prevention of outstanding receivables for the sale of goods or services or reducing the number of unpaid invoices is a mainstay of successful management. The trading company firstly examines the customer, whether it is incorporated and determines whether the borrower is in bankruptcy. The verification of the quality and potential regular customer. We have to obtain reasonable assurance that the customer will be able to meet its obligations.These information are freely accessible online on many sources. Before concluding the first commercial contract with a new customer is required to declare by the notarized certificate of incorporation. Another option is requiring a substantial down payment for credit purchases in order to improve your organization's cash flow situation.
Monitoring receivables outstanding invoices in the software database is another way to control the observance of the maturity of commercial credit and prevent their occurrence. To prevent receivables serves contractual provision between the company and the customer.
5.Securing the receivables
The last step before providing trade credit is the use of appropriate tools to limit the risk of non-payment.
Business loans can be provided as unsecured (in the case of permanent verified customers), or the supplier may require pledging