What is management of receivables? What are its objects?

What is management of receivables? What are its objects?

Receivables are amounts owed to the company by the customers to who company sell goods or services in the normal course of business. The main purpose of managing receivables is to meet competition and to increase sales and profits.

Following are the objectives of receivables management which will help us to understand the purpose of receivables:

1. To optimize the amount of sales
2. To minimize cost of credit
3. To optimize investment in receivables.
4. To increase credit sales.

Therefore, the main objective of receivable management is to create a balance between profitability and cost.

What are the areas covered by receivables management?

Following are the areas covered by receivables management:

- Credit Analysis
- Credit Terms
- Financing of Receivables
- Credit Collection
- Monitoring of Receivables
What is float in receivables management?
Float is the time gap in the receivables management and these can be in the following forms:…
What do you mean by credit terms? What are its various aspects?
Credit terms are the conditions under which the company extends the credit given to the customer…
Explain credit analysis. What are the sources through which a company gets to know about a customer s credit worthiness?
Every company operates to maximize its profit by increasing sales. In order to increase its sales company gives credit to its customers….
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Discussion Board
comment on receivable management
Really it's wonderful article but you should have explain the all objectives and factors at least one line.
s.aakash 06-20-2016
easy language,more content to give..about all points..
anku 11-10-2012