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Receivables management: moving beyond transactions. (Selected Topic).

Business Credit

| March 01, 2003 | Schuchardt, Michael | COPYRIGHT 2003 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Most businesses do not consider themselves lenders. Interestingly, the business of granting extended terms to a customer or supplier is generally not viewed the same as granting credit in the financial services industry. The reason? Businesses are not lending money. Rather, they are offering products or services in exchange for payment at a later date. However, the end result is the same--since the payment is not received immediately, credit is being granted and the business is taking on credit exposure.

Issuers of business credit can learn a few lessons from financial services institutions (FSIs), which not only use scoring technology to help manage transactions ...

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