credit management
Borrowing behavior control
Credit management is the practice of controlling how credit is extended and collected.
Businesses use credit management to decide which customers can buy on credit, set payment terms, and pursue overdue accounts.
Good credit management balances sales growth against the risk of bad debt.
On the personal side, credit management means handling your own debts and credit score responsibly.
- creditworthinessAbility to repay debts
- write-offRecorded value reduction
- charge offDeclare debt unrecoverable
- payment historyRecord of past transactions
- grace periodAllowed delay before consequences
minimum payment · past due · risk analysis · good standing · dunning · cash flow analysis · arrears · collection agency · debt restructuring · underwriting · interest rate · garnishment · debt repayment · installment plan · balance transfer · collateral · repayment terms · late fees
- financebank, CFO, banks, controller, finance
- money managementsaving, savings, budgeting, budget planning, expense tracking
- commercetrade, banking, merchant, imports, sales
- homemakingcooking, cleaning, laundry, recipes, baking
- accountingbookkeeping, ledger, balance sheet, general ledger, accounts payable
- home economicshome economics, cooking, cooking techniques, sewing, cleaning
credit managementoverspending
Exceeding one's budget
living beyond one's means · compulsive spending · impulse buying
credit managementfinancial mismanagement
Improper handling of funds
debt spiral · defaulting · bankruptcy · insolvency · financial ruin