• Review the specific costs and benefits which are relevant to determining the objectives of receivables management
• Understand how to measure the key variables and use them to evaluate quantitatively the effects of either relaxing or tightening a firm’s credit standards
• Describe the key aspects of credit selection: obtaining credit information and analysing credit information
• Review the three basic components of a firm’s credit terms, the effects of changes in each of them on key variables and profits and the procedure for evaluating the quantitative effects of the proposed changes
• Explain the key features of collection policy, the basic tradeoffs and the popular collection techniques
