Trade credit in the fun !

Economic context and consequences of intercompany credit for businesses in their debt collection

We live in a world where credit and cash have become the main concerns of economic actors.

Whether from the top of great states or from a business manager point of view, the "cash" is essential to survive, pay suppliers and employees, and develop income.

If the news highlights the role of markets and banks in financing public debts, the business reality is much more singular.

Indeed, the primary source of business finance is provided by the trade credit which is in France for example more than 300 billion euros, more than the state budget.

Each company, except in special cases, finance its clients while making itself financed by suppliers. Depending on the strategy and level of recognition of this reality, a company will benefit from this situation or suffer the disadvantages.

Many companies paradoxically do not consider the management of the credit as a priority and relegated it behind the issues of turnover and margins.

Nevertheless the cash is the sinews of war ... and management of any business.

Faced with the growing reluctance of banks, too much exposed to the risk sovereign debts of states and less and less able to finance the businesses, trade credit will be solicited more in the coming months, increasing the risk associated with it.

Each company is a supplier for its customers of equipment and services but also as an "establishment of trade credit."

That's why the Credit Management is essential. It helps to prevent risk of unpaids and to get the cash inside your business instead with your customers.

Credit Management is also important that the sales or profitability.

Improve your Credit Management with Credit tools

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