collection

1. •Credit problems
•Collection policies

2.  The debtor who misunderstands the credit
terms

10.  Requires less working capital tied up in
receivables
 Reduces the loses of bad debts
 Decreases the probability of of expensive legal
action
 Reduces the costs of correspondence, book
keeping and collections
 Discourages poor risks from costumers
 Reduces loss of sales

11.  The creditor should inform the debtor