Credit Management gives a glimpse of the system of credit management practiced all over the world. It also gives information about the various factors that have a bearing on this process, besides looking at the responsibilities of the debtors with regards to credit management. There is also some discussion about the credit management services that are on offer nowadays. Overview of Credit Management The term credit management means the various ways in which a debtor looks after the financial resources he or she might have received as credit. Proper credit management is important for the financial well-being of the debtor. More about Management of Credit Repayment The management of credit repayment is the most important part of the process of credit management. The borrower should make sure that he pays back the credit taken in time in full accordance with the contract reached between him and the lender.
In order to make sure that he is able to pay the money back in time the debtor may take recourse to any way that helps him in doing so. One of the most commonly followed ways in this context is that of savings. For example, the debtor can put away a certain part of his income and use it in order to repay the credit. Use of Channelization of Monetary Resources Proper channelization of monetary resources is an important part of the system of credit management. It is necessary for the debtor to make sure that he is putting the money he has received from the credit into proper sources. It is almost mandatory to not waste the financial resources that have been procured from creditor. Types of Credit Management Services At present there are a variety of business entities that are dealing in the provision of credit management services. There are basically two types of credit management service providers. There are certain companies that cater to individuals. On the other hand, there are a few companies that provide services to the various business entities as well as the owners of business organizations.
Last Updated on : 9th July 2013