Payment schedule is an agreement between the buyer and the seller which defines when and how credit will be repaid. Read to learn more about payment schedules.
What is a bad debt expense and how to protect your business?
Bad debt represents money due to your company which is unlikely to be paid. Tracking and managing bad debt is essential to ensure a company’s financial health.
Gearing ratio is one way to measure a company’s financial health. It involves comparing the company's capital to the amount of money the company has borrowed.
Once you have decided to extend credit, you need to establish credit terms. Credit terms refer to the specifications for invoice payment at a later date.
The pros and cons of extending credit to customers
By extending credit to customers, you are telling them that you trust them to pay their bills, and you are financially healthy with access to working capital.
Credit protection is used to protect against the risk of non-payment by a customer. A business concerned about the risk of default or non-payment can draw up an agreement with a company such as Allianz Trade to provide credit protection services
