Benchmarks: Credit Practices

Credit management is the first line of defense in protecting a company's most valuable asset: cash. Despite that, IOFM found htat only 40% use Service Level Agreements when extending credit. And only 10 percent use them 100 percent of the time. Each company must determine a risk factor that will allow it to gain adequate market share without having an uncollectible receivable amount that jeopardizes the company's financial health. However, each company determines risk differently. The following…