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- Meaning of Debtor management
- Main elements or dimensions of Debtors management
1. Credit policy (Sub part of credit policy - Length of Credit period/Cash discount)
2. Credit policy analysis
(Collection of debtor's information/Credit Decisions)
3. Formulation Collection Policy a) Send reminding letter for paying debt b) Take the help of debt collection agency for getting bad debt. c) To do legal action against bad debtors. d) To request personally to debtor to pay his dues on mobile or email. e) Finance manager should monitor collection position through average collection period from past sundrydebtor and their turnover ratio. f) To make ageing schedule.
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