Managing receivables
Sponsored Links
This presentation is the property of its rightful owner.
1 / 16

Managing Receivables PowerPoint PPT Presentation


  • 56 Views
  • Uploaded on
  • Presentation posted in: General

Managing Receivables. Credit policy toward customers. When selling on credit, businesses need clear policies about…. Which customers? Use the 5 C’s…. Length of credit period determined by…. Note contribution = price – variable cost = 40 – 20 = 20 (or 50% of selling price).

Download Presentation

Managing Receivables

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Managing Receivables

Credit policy toward customers


When selling on credit, businesses need clear policies about…..


Which customers? Use the 5 C’s…


Length of credit period determined by…


  • Note contribution = price – variable cost = 40 – 20 = 20

  • (or 50% of selling price)

* More credit implies more customers.


* The increase in finance costs assumes a 10% interest rate. There is no increase in non-payment added in this example.


Cash discounts


Collection policies: Steps can be taken to reduce the risk of non-payment


  • Login