Credit Control


DEFINITION of 'Credit Control'

A strategy employed by manufacturers and retailers to promote good credit among the creditworthy and deny it to delinquent borrowers. This will both increase sales and decrease bad debts, thus improving a company's cash flow. Credit control is an important component in the overall profitability of many firms.

Also known as "credit management".

BREAKING DOWN 'Credit Control'

The effectiveness of credit control procedures lies chiefly in the lender's ability to judge the creditworthiness of potential borrowers. This is much more effective than trying to reclaim money from delinquent borrowers.

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  1. Will my credit score suffer from debt consolidation or refinancing?

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    Creditors that allow purchases to be made through financing often require property to be pledged against a credit account; ... Read Full Answer >>
  3. What is the best way to start to rebuild your credit after a bankruptcy?

    Bankruptcies can be devastating to your credit score. Even worse, a bankruptcy will be listed on your credit report for between ... Read Full Answer >>
  4. How do modern companies assess business risk?

    Before a business can assess or mitigate business risk, it must first identify probable or likely risks to its bottom line. ... Read Full Answer >>
  5. Why has emphasis on corporate governance grown in the 21st century?

    Corporate governance refers to operational practices, management protocols, and other governing rules or principles by which ... Read Full Answer >>
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