1. The document discusses credit policy options for a trader seeking to increase sales by pursuing a more liberal credit policy. 2. It analyzes allowing additional credit of Rs. 6 lakhs at a 30 day collection period, 1% current bad debt rate, and 20% required return on additional investment. 3. Afterschool conducts social entrepreneurship programs to promote entrepreneurship and social development through workshops, case studies, and branches in major cities.

1. Receivables and Collections Management AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME – World’s Most Comprehensive programmes in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL

2. Receivables and Collections Management Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] www.afterschool.tk , www.afterschoool.tk

3. CREDIT POLICY A trade-off between allowing easy liquidity (increasing business volume) and faster and more realisation Two extreme possibilities : Easy credit policy : easy credit – and consequently easy money – high turnover, but also high bad debts. No credit / tight credit : low business turnover

4. Meaning of credit policy It is a policy which guides the finance executives and other executives in taking following decisions: Whom to give credit How much credit facility to be provided What should be terms and conditions What should be collection policy What should be done if payment is not coming.

5. A trader whose current sales are in the region of Rs.6 lakhs per annum and a collection period of 30 days wants to pursue a more liberal policy to increase sales.Look at the following options and decide

6. Additional information The selling price per unit is Rs.3. Average cost per unit is Rs.2.25 and variable costs are Rs.2. The current bad debt loss is 1%. Required return on additional investment is 20%. Which is the best option?

7. Solution See the solution

8. Factors determining credit policy Credit terms (more stringent the terms, less will be credit) Cash discount (higher the cash discount, greater the incentive to make quick payment) Policies regarding selection of credit customers (how is a customer identified and selected). Collection policies Customers’ habits (regarding payment etc.)

9. ABOUT AFTERSCHO☺OL Afterschoool conducts three year integrated PGPSE (after class 12 th along with IAS / CA / CS ) and 18 month PGPSE (Post Graduate Programme in Social Entrepreneurship) along with preparation for CS / CFP / CFA /CMA / FRM . This course is also available online also. It also conducts workshops on social entrepreneurship in schools and colleges all over India – start social entrepreneurship club in your institution today with the help from afterschoool and help us in developing society.

10. Why such a programme? To promote people to take up entrepreneurship and help develop the society To enable people to take up franchising and other such options to start a business / social development project To enable people to take up social development as their mission To enable people to promote spirituality and positive thinking in the world

11. Who are our supporters? Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us. You can also support us – not necessarily by money – but by being promotor of our concept and our ideas.

12. About AFTERSCHO☺OL PGPSE – the best programme for developing great entrepreneurs Most flexible, adaptive but rigorous programme Available in distance learning mode Case study focused- latest cases Industry oriented practical curriculum Designed to make you entrepreneurs – not just an employee Option to take up part time job – so earn while you learn The only absolutely free course on internet

13. Workshops from AFTERSCHO☺OL IIF, Delhi CIPS, Jaipur ICSI Hyderabad Branch Gyan Vihar, Jaipur Apex Institute of Management, Jaipur Aravali Institute of Management, Jodhpur Xavier Institute of Management, Bhubaneshwar Pacific Institute, Udaipur Engineering College, Hyderabad

14. Flexible Specialisations: Spiritualising business and society Rural development and transformation HRD and Education, Social Development NGO and voluntary work Investment analysis,microfinance and inclusion Retail sector, BPO, KPO Accounting & Information system (with CA / CS /CMA) Hospital management and Health care Hospitality sector and culture and heritage Other sectors of high growth, high technology and social relevance

15. Salient features: The only programme of its kind (in the whole world) No publicity and low profile course For those who want to achieve success in life – not just a degree Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes Scholarships for those from poor economic background Latest and constantly changing curriculum – keeping pace with the time Placement for those who are interested Admissions open throughout the year Latest and most advanced technologies, books and study material

16. Components Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) Meditation, spiritualisation, and self development EsGotitial softwares for business Business plan, Research projects Participation in conferences / seminars Workshops on leadership, team building etc. Written submissions of research projects/articles / papers Interview of entrepreneurs, writing biographies of entrepreneurs Editing of journals / newsletters Consultancy / research projects Assignments, communication skill workshops Participation in conferences and seminars Group discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)

17. Pedagogy Case analysis, Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visits PreGotitations, Latest audio-visuals Group discussions and group projects Periodic self assessment Mentoring and counselling Study exchange programme (with institutions out of India) Rural development / Social welfare projects

18. Branches AFTERSCHO☺OL will shortly open its branches in important cities in India including Delhi, Kota, Mumbai, Gurgaon and other important cities. Afterschooolians will be responsible for managing and developing these branches – and for promoting social entrepreneurs.

19. Case Studies We want to write case studies on social entrepreneurs, first generation entrepreneurs, ethical entrepreneurs. Please help us in this process. Help us to be in touch with entrepreneurs, so that we may develop entrepreneurs.

20. Basic values at AFTERSCHO☺OL Share to learn more Interact to develop yourself Fear is your worst enemy Make mistakes to learn Study & discuss in a group Criticism is the healthy route to mutual support and help Ask fundamental questions : why, when, how & where? Embrace change – and compete with yourself only

21. www.afterschoool.tk social entrepreneurship for better society