The term Receivables Management(RM) may be defined as collection of steps and procedure required to properly weigh the cost & benefits attached with the credit policies. The RM consist of matching the cost of increasing sales (particularly credit sales) with the benefit arising out of increased sales with the objective of maximizing the return on investment of the firm.

Accounts receivables  are simply extensions of credit to the firm’s customers, allowing them a reasonable period of time in which to pay for the goods. Most firm treat account receivables as a marketing tool to promote sales & profits .The receivables ( including the debtors & the bills) constitute a significant portion of the working capital and is an important element of it. The receivables emerge whenever goods are sold o credit & payments are deferred by customers. Receivables is a type of  loan  extended by a seller to the buyer to facilitate the purchase process. As against  the ordinary type of loan, the trade credit in the form of receivables is not a profit making service  but an inducement  or facility to the buyer- customer of the firm.

For more help in  Receivables Management please click the button below to submit your assignment: