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Once credit has been extended it is vital to ensure that customers abide by agreed terms of trade. Regular checks on customer accounts for instance using an aged receivables analysis can direct attention to overdue accounts or those close to their credit limit.
Statements of account must be mailed to receivables on a regular basis in order to remind them of their outstanding debts. Late payers must be contacted by telephone to enquire after the reason for the delay in settling their accounts. A policy of charging interest on unpaid accounts might be considered in order to encourage prompt payment.
Inventories constitute a important portion of the current assets ranging from 40 percent to 60 percent for manufacturing companies. The manufacturing companies conduct investments
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DEEDS OF ARRANGEMENT (D of A) 1. Nature of a D of A : To avoid the expense and delay involved in a bankruptcy, a debtor in trouble may make a private arrangement with the
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