METHODOLOGICAL APPROACHES TO THE FORMATION OF THE FINANCIAL MANAGEMENT POLICY OF RECEIVABLE ARREARS

Abstract

In modern conditions, an objective need arises in controlling education and the state of accounts receivable, determining credit policy, analyzing and ranking clients, forecasting cash receipts from debtors, and reducing bad debts. Using the methods of theoretical and empirical research, such as analysis and synthesis, classification, proof, systems approach, logical method, the significance of the credit policy is revealed, its elements are considered in detail, the main problems of the credit policy organization are highlighted. On the basis of the materials presented by practitioners in this field, a critical analysis was conducted of the method for calculating the rating assessment of debtors, the calculation of limits for the provision of installments, and the assessment of the client’s solvency. According to the results of the study, methodological approaches were identified that allow creating an effective credit policy in order to control receivables and reduce the risk of uncollectible receivables and doubtful debts. To calculate the credit limit, you should create a system to evaluate the creditworthiness of their counterparties. To this end, it is necessary to assess the reliability of customers, applying one of the techniques discussed in the article. When calculating the limit of a specific counterparty, a number of techniques can be applied. One of them is to implement a series of successive procedures for assessing a credit rating, forecasting the distributor’s need for financing and determining the credit limit. Alternatively, you can apply the formula for calculating the limit on the basis of turnover and the planned volume of sales for the period. The article examined ways to increase cash turnover, allowing to attract customers and improve the efficiency of return of receivables. These methods include the provision of discounts to the buyer, obtaining a short-term loan or factoring.