The term Credit Management embraces all activities and tasks aiming at getting invoices paid. This includes prevention (implementing features designed to avoid bad payment – like solvency checks, credit limits, etc. – but also features intended to provide the creditor with tools to be used when a debt is unpaid – like general sales conditions, order forms, etc.).
Credit management also includes debt collection itself whether it is performed in house or outsourced. Credit management has become essential to the global management of a company insofar 50% of bankruptcies are actually due to poor credit management.
Definitions provided under this section refer to the Belgian situation; unless specified otherwise. The texts are meant to summarize concepts in daily language and should not be considered as comprehensive or definite. We welcome suggestions for modifications or additions at email@example.com.