2011年《F9财务管理》ACCA考试讲义辅导(21)

Credit terms granted to customers
　　Although sales representatives work under the premise that all sales are good (particularly, one may add, where commission is involved!), the credit manager must take a more dispassionate view. (S)he must balance the sales representative's desire to extend generous credit terms, please customers and boost sales, with a cost/benefit analysis of the impact of such sales, incorporating the likelihood of payment on time and the possibility of bad debts. Where a customer does �survive� the credit checking process, the specific credit terms offered to them will depend upon a range of factors. These include:
　　· Order size and frequency � companies placing large and/or frequent orders will be in a better position to negotiate terms than firms ordering on a one-off basis.
　　· Market position � the relative market strengths of the customer and supplier can be influential. For example, a supplier with a strong market share may be able to impose strict credit terms on a weak, fragmented customer base.
　　· Profitability � the size of the profit margin on the goods sold will influence the generosity of credit facilities offered by the supplier. If margins are tight, credit advanced will be on a much stricter basis than where margins are wider.