Advisory Service on Business Credit Management
Diagnosis of Credit Management System
1) Analyzing account receivables by time period and quality
2) Identifying causative reasons for overdue and bad loans
3) Classifying customers by types and features
4) Identifying points of threat
5) Shooting problems and loopholes in existing system
6) Assessing existing credit management functions
7) Reviewing existing credit approval procedures
8) Assessing credit management people
9) Assessing management software in use
10) Defining key issues and formulating solutions
Formulation of Credit Management Rules
1) Rules for customer credit management
2) Criteria for credit approval/reject
3) Rules for account monitoring
4) Procedures for contract/file management
Establishment of Credit Management Functions
1) Defining duties and power of credit management department
2) Designing posts necessary in the department
3) Defining requirements for each post
4) Defining relationship between credit department management-related functions
5) Charting the organizational structure of credit and other functional department
6) Charting the workflow of credit sales
7) Defining the scope and weights for performance assessment of different departments
Formulation of Credit Policy
1) Principal and policies for different types of customers, products and stages
2) Credit ceiling implication
3) Credit lines and terms
4) Cash discount
5) Other favorable terms that are associated with purchase volume
6) Discounts and allowance
7) Credit policies for big-volume customers and key customers
8) Distributor credit policy
9) Collection policy and procedure
10) Internal management of credit policies down to sales people
Formulation of Customer Credit Rating Model and Rating Criteria
1) Designing rating model
2) Defining rating approaches
3) Determining weights
4) Determining rating criteria
Restructure of Credit Approval Workflow
1) Establishing rules for credit sales management
2) Designing workflow and defining risk control points
3) Formulating forms and formats necessary for the workflow
Establishment of A/R Management Polices
1) Determining A/R sizes suitable for customers and their industries
2) Determining the criteria for A/R assessment suitable for customers
3) Keeping track of credit standing of customers
4) Formulating decision-making procedures for A/R extension
Design A/R collection steps:
1) Determine causative factors and assessment indices
2) Decide on effective collection approaches
3) Establish a phased collection system that suits the client
? Advisory Service on Computerized Systems
Huaxia Credit has applied to cutting-edge information technologies to credit management and designed and developed business credit management systems using network. The computerized workflow promises reduced staff cost and enhanced efficiency in credit management. Huaxia Credit can design and develop credit management systems to suit different businesses.
We provide advisory services on the following two kinds of computerized systems:
- COM (Credit Operation Management)
- Customized credit management system
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