Discuss three strategies for financing working capital

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Reference no: EM131356721

“Credit management plays an important role in the financial success of any organisation. An important policy decision that Management should make is to consider whether the credit management function in a company should be the responsibility of the finance department or the marketing department or both”  

Required:

a. Explain what is meant by credit management.

b. Discuss why cash is considered as a life blood for any business.

c. Discuss three strategies for financing working capital.

d. Critically evaluate the advantages and disadvantages of placing the credit management function in the marketing department.

e. Critically evaluate the advantages and disadvantages of placing the credit management function in the finance department.

f. Based on your answers to (d) and (e) above, explain with justifications as to whether the credit management function should be placed in marketing department or in the finance department or in both departments.

Reference no: EM131356721

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