Managing Trade Receivables and Trade Payables
How can businesses manage their trade receivables effectively?
Businesses can manage their trade receivables effectively by establishing clear credit policies, conducting thorough credit checks on customers, setting credit limits, enforcing timely collections, and implementing effective accounts receivable management systems.
What are the strategies for optimizing trade payables and managing supplier relationships?
Strategies for optimizing trade payables and managing supplier relationships include negotiating favorable payment terms, implementing vendor management programs, developing long-term partnerships, consolidating suppliers to leverage buying power, implementing electronic invoicing and payment systems, and maintaining open communication and transparency with suppliers. These strategies aim to improve cash flow, ensure reliable supply, manage costs, and foster mutually beneficial relationships with suppliers.