ANY FOOL CAN LEND MONEY BUT IT TAKES A LOT OF SKILL TO GET IT BACK
Receivables are sales made on credit basis. According to Hampton, “Receivables are asset accounts representing amount owned to the firm as a result of the sale of goods or services in the ordinary course of business”. Thus receivables are an asset and represent claims of the firms against its customers. According to Robert N Anthony, “Account receivables are amounts owned to the business enterprise, usually by its’ customers. Sometimes it is broken down into trade accounts receivables; in the former refers of amount owned by employees and others”. As a part of the operating cycle, time lag between sales and receivables creates need for working capital.
Credit is the soul of business. Receivable management is the process of making decisions relating to investment in trade debtors. Certain investment in receivables is necessary to increase the sales and the profits of the firm. But at the same time investment in this asset involves cost consideration also. Receivable management may be defined as collection of steps and procedure required to properly weigh the costs and benefits attached with the credit policies. The receivables management consists of matching the cost of increasing sales (particularly credit sales) with the benefits arising out of increased sales with the objective of maximising the return on investment of the firm.
MIRA INFORM provides outsourced solutions which help accelerate cash flow for our clients. We mediate with your customers to help optimize your working capital while protecting your brand and maintaining customer loyalty. In other words, we become a seamless extension of your company’s collection efforts, safeguarding the same values your company represents.
MIRA INFORM can manage your receivables by ensuring swift conversion of your invoices to cash, accepting the credit risk of your buyers and assuring accountability of collections for your customers because your customer is not your bank, don’t park your money with them.