Probir Banerjee has Published 469 Answers

What are the Techniques for Monitoring of Accounts Receivables?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:21:19

For a business to continue running with granting credit, it must continuously monitor the accounts receivables so that there is no laxity in the process of credit collection. There are two traditional methods that are used to monitor accounts receivables. These areAverage Collection PeriodAging Schedule.As these methods have some limitations, ... Read More

What is Collection Matrix?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:18:29

The notable drawback of traditional methods of monitoring receivables is that they are dependent on aggregated data. Moreover, methods such as Average Collection Period (ACP) and aging schedule fail to relate outstanding accounts receivables of a certain period with the credit sales in that particular period of time.Therefore, two professionals ... Read More

What is the use of Discriminant Analysis in Credit Score Model?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:16:15

What is Discriminant Analysis?Apart from using a numerical scoring model, a firm may use discriminant analysis in credit scoring models.Discriminant analyses for credit scoring are divided into two sections. They are as follows −Simple Discriminant AnalysisMultiple Discriminant Analysis Models.Discriminant models are objective methods of finding the differences between good and ... Read More

What is Aging Schedule?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:14:20

Aging ScheduleThe aging schedule is a summarized list of accounts receivable broken down into different time periods that rank the receivables depending on days until due or past due. The aging schedule is generally divided into 30 days’ categories so that the current items are listed in the 0–30 days’ ... Read More

What are the Key Contents of a Credit Analysis Report?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:12:34

What is Credit Analysis?Credit analysis is an important aspect of business organizations and lenders who offer loans or goods and services on credit. Credit analysis reveals the nature of the customers and shows the potential customer who would be either good or bad in repaying the credited amount. The findings ... Read More

What are the Steps Involved in Effective Collection Procedure?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:10:23

Collection ProcedureCollections of credit are a very important part of the credit management process as it is the final part of the initiative. By collecting the dues, a lender completes the cycle of credit management. Since collecting the dues is the sole reason for granting credit, firms must know how ... Read More

What are the Factors Affecting Credit Scores?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:08:43

Credit ScoreThe lenders usually depend on a credit score to check how good or bad an individual is in repaying the debt. This score is known as a credit score. A credit score is a key to getting a new loan approved or rejected. When the credit score is above ... Read More

Marginal Account vs. Cash Account

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:06:44

What is a Marginal Account?Marginal accounts allow investors to borrow money by putting securities they buy as collateral which can be used to buy more securities or for other purposes.The investor’s status of securities can also be viewed by a broker in the case of a marginal account. These accounts ... Read More

What are the 5 C's of Credit Analysis?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:04:57

Credit AnalysisCredit analysis is an important part of businesses that provide credit to their customers in order to expand their business portfolio. However, like all other protocols of business, credit analysis is also based on some important factors.To get rid of losses created by bad debt and lengthy payments, businesses ... Read More

What are the Stages of Evaluation in Credit Analysis Process?

Probir Banerjee

Probir Banerjee

Updated on 04-Jul-2022 12:03:29

What is Credit Analysis?Every business that offers credit to its customers faces a risk of losing money in terms of bad debts. Moreover, many organizations that are granted credit may delay in making payments which may hurt the firm that offers credit to such customers. It is therefore necessary for ... Read More

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