Strategic Planning in credit management is essential for several reasons:
Risk Management: Credit policies help mitigate the risk of bad debts and non-payment, ensuring the company maintains a healthy cash flow. Customer Relations: Clear credit terms can improve customer relationships by setting expectations and reducing misunderstandings. Operational Efficiency: Well-defined policies streamline the credit approval process, reducing administrative burdens and speeding up decision-making. Financial Health: By controlling the amount of credit extended, businesses can better manage their working capital and liquidity.