How can management practices speed the collection of receivables? Which management practices tend to slow the collection of receivables?© BrainMass Inc. brainmass.com March 4, 2021, 7:58 pm ad1c9bdddf
Receivables management will help in maximizing the profit as it will manage the customers in optimal manner. The following practices will speed the collection of receivables
Pledging Accounts Receivables
Accounts receivables represent the money owed to a business from credit sales to customers. Accounts receivable can also be used as a way of short term financing if it is used as collateral for a loan. This is known as the pledging of the accounts receivable. The value of receivable depends on the credit worthiness of the organization's customer. The borrower ...
This solution explains why particular management practices can either make the collection of receivables a faster or slower process.