Efficient Receivables Management: A Case Study of Siemens Bangladesh Limited
Author(s)
Shaikh Masrick Hasan, Anup Kumar SahaAbstract:
This study aims to find out the appropriate credit policy for the customers to reduce the cost for such credits including bad debt losses and the amount of overdue. Siemens Bangladesh Limited (SBL) has been taken as a case sample for the purpose of this study. There are costs involved in the investment in accounts receivables, which means granting credit to customers to increase sales to make profit and also to run the business successfully. This study recommends a cost reduction through selecting the appropriate and suitable customers and also taking some promotional activities. Besides, a tight credit policy is also recommended in the study for the slow paying customers.
Key words: Accounts receivables, Receivables management, Category of customer, Credit policy, Customer value maps