Good Credit Management Involves: Providing credit trading termsIs giving your customers interest free, unsecured loans. Time is MoneyCollecting money from debtors more quickly provides cash at a faster rate to grow a business or retire debt. Trading TermsAgreed with your customers – why then do so many companies allow their customers to significantly s-t-r-e-t-c-h contractually agreed terms? Lack of CashThere is nothing more important than getting paid for your product or service given many businesses fail through lack of cash despite making profits. Late PaymentsErode profits, and if you don’t manage debtors they will begin to manage you, gradually taking away your flexibility to manage your business. Days Sales OutstandingA correct financial measure of your business’ investment in credit sales, but NOT the correct measure of your Credit team’s performance if trading terms are varied.