During the meeting, my boss points out that the current level of bad debt and investment in accounts receivable are a little bit large. Apart from tightening the current credit policy, could you please suggest one way to reduce each of them if our company wants to maintain the credit policy.© BrainMass Inc. brainmass.com September 21, 2018, 2:07 pm ad1c9bdddf - https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/credit-policy-for-a-company-136017
Reduce the investments in accounts receivables by:
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 ...
The solution discusses credit policy.