Receivables, payables and inventory - part 1
Taught by James Griffiths · AI tutor support included
Master the fundamentals of receivables management and understand how credit policies directly impact cash flow and profitability. This lesson explores the strategies for extending credit to customers, calculating the true cost of settlement discounts, and implementing effective credit control measures that balance sales growth with financial risk.
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In this lesson
- 0:00 Introduction to Working Capital Management
- 0:20 Overview of Receivables
- 1:04 Offering Credit Explained
- 2:10 Measuring Receivables
- 2:54 Extending Credit Benefits and Costs
- 7:04 Understanding Settlement Discounts
- 11:20 Managing Receivables Strategies
About this lesson
Dive into the intricacies of managing receivables in the first instalment of a two-part series on working capital management. This video provides a deep dive into the strategies behind offering credit to customers, accurately measuring receivables, and the implications of extending credit terms and settlement discounts. Learn how assessing customer creditworthiness, monitoring receivables, and implementing effective credit policies can significantly impact a company's sales and profit margins. Gain actionable insights on balancing the costs and benefits of credit extension, and understand the formula for calculating the annual cost of giving discounts. This video is an essential watch for professionals seeking to optimise their company's financial health through strategic receivables management.
Duration: 13m
- Working capital management principles
- Credit assessment and customer creditworthiness
- Receivables measurement and accounting
- Settlement discounts and their annual cost
- Credit terms and payment periods
- Receivables monitoring and collection strategies
Transcript
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