“Credit” has increasingly become a fashionable topic. However, the credit is the business credit management should be in the end how to do it, a lot of people even before the personnel engaged in credit management, there are still a lot of different understanding, or that there is a lot of misunderstanding. Based on the author engaged in years of corporate credit risk management experience, to talk about business credit management.
”Credit risk management” to eliminate the “credit risk”
Business credit management of corporate credit risk prevention undoubtedly play a very important role in the enterprise but the tenor of the credit risk management is not to eliminate risk, because that would only return opportunity wasted. Receivable bad debt rate is zero enterprise, and not necessarily is a good risk management enterprise. If we are able to pre-established methods and measures to deal with risks, the risk can be a beneficial factor. Need to do risk management should be risk management, active choice that benefits risk.
”Credit risk management is a thing of the credit management department”
Enterprises to establish credit management department, the credit management department should be responsible for the day-to-day work of the company’s credit management, credit risk management department staff alone can be done does not mean that the corporate credit risk management. Corporate Credit Risk Management is a management system, it is one of the important strategy of the company, the first thing needed is the company’s high-level attention and sufficient knowledge, otherwise the work will be a mere formality; Second, it needs to the business of the company sector, particularly in the sales department, finance department, business department, legal department with credit risk implement the entire sales process.
Credit Management Authority is equal to the receivable accounting
Many companies, in the absence of the creation of specialized receivables management departments and specialized credit management. Founded credit management department, they still credit the work of the Authority as receivables accounting point of view, or even converted from accounting positions specializing in credit management some credit MA or previously receivables accounting responsibilities to demands on themselves. Receivable the Accounting emphasis on accounting, Although some companies receivables collection and analysis, and Credit Management Authority management point of enterprise credit risk management of all aspects of development from the customer, the contract signed, to the credit application, The amount of assessment, order management, delivery of goods, transfer of risk until late receivables management and overdue collection, is a full management and control process, credit management specialists need to track and manage the initiative.
Enterprise as long as there is no bad debts on the line, it is not much overdue ”
Hold this view of enterprise risk management, they still very seriously, very strict customer selection and the issuance of the credit line, receivable management, especially overdue after the treatment will not be so strict; same time, they from itself, or not pay much attention to the company’s working capital management. In fact, overdue impact on businesses and bad debt, just as great. Bad debt performance directly impact on profits, receivables overdue for the use of funds and financial costs is even more direct. Imagine if a business a million monthly average receivables overdue for a month, the annual loan interest rate of 6% a year down the impact of the financial cost of 6 million yuan. Therefore, the developed countries in the West, accounts receivable overdue bad debts more hateful than most companies believe. Credit management work, not only is a very important part of a risk management, enterprise operations management.
”Credit equal integrity”
”Credit is good faith” in the now, a lot of people will “credit” with the state and society “fake” and “anti-fraud” linked. In fact, the credit is not only the integrity of the environment issues, is an economic issue. Small Business credit customers without payment, credit risks, not only with the quality of customer enterprises more and the client’s solvency, financial strength, and guarantee factors conditions, which is what we usually speak evaluation enterprise credit “5C” elements. At the same time, the credit risk of the enterprise not only from the external environment and customers that only external factors, it is more important from our internal, from our corporate credit management capabilities and clients grasp.
In short, the corporate credit management, also known as “credit risk management, corporate credit policy, guidance and coordination of various departments within the business activities, the collection and evaluation of customer information, customer credit granted creditor protection should be receivables recovery trading links all supervision, to protect the security of accounts receivable management and timely safety recover. How to correctly understand the essence and meaning of corporate credit risk management, and create the correct credit management culture, which is the premise and basis of the corporate good credit management.