1. What would happen if your banker required you to shorten your Days Sales Outstanding and average collection period? How would you accomplish this? 

2. How do we determine the cost of trade credit? What is trade credit?

The creation and carrying of accounts receivable has both direct and indirect costs, but it can also have the enormous benefit of increasing sales. Let’s talk about how you would establish a brand new credit department in a company whose approval is required for all sales. 

1. What would you do first if you were the Credit Manager? 

2. How would you determine that customers were qualified to buy from you on open account?

A working capital shortage can cause a growing company to go bankrupt despite lots of profitable sales. Let’s talk about the current liability side of our balance sheet.

1. How would you go about getting vendors to sell to you without demanding COD or COO (cash on order) terms? 

2. How would you approach a banker for a working capital loan ?