Establish The Credit Management System And Strengthening The Management Of Accounts Receivable

As market economy develop continuously, credit risk and credit management becomean issue that can influence and restrict development of enterprise. Chain debts of SOE,defaulting payment for goods among enterprises and receivables have become chronic andstubborn disease of society, all of these affected capital turnover and improvement ofeconomical benefit of enterprise. Presently few domestic enterprises are familiar withcredit management;the enterprise which develops systemic credit management is less.Issue of how to develop credit management accord with Chinese enterprise is solvedurgently. The paper analyzes and discusses how to build credit management system andhow to enhance management of receivables. The paper has been divided into five chapters.The first chapter presents meanings and effect of enterprise credit management,domestic actuality of credit management and reason of engendering actuality.The second chapter expatiates necessity of establishment of credit managementdepartment, then nail down its function and its relation with other departments. Creditmanagement department must be checked termly.The third chapter mainly discusses establishment of credit policy. It presents goals,establishment principle, effect factor of credit policy . It also presents credit policy's styles,credit policy's classifying application.The fourth chapter presents how to establish preventability mechanism of receivablesand supervising system. Then it discusses also treatment of receivables.Finally, the paper validates success of Lenovo company which is due to right creditmanagement system. Moreover Lenovo company just reaches before-mentioned four partsso as to get stronger competition and better development space.