credit (noun, cred-it, \ ˈkredɪt \) control (noun, con-trol, \ kənˈtroʊl \)
Definition: is a plan of action used by companies and retailers to distribute good credit to partners that have proven to be creditworthy and refuse it to delinquent parties. Adequate credit control is essential for the overall profitability of a business and can help boost sales while lowering bad debts, which leads to the increase in the organization’s cash flow. To establish this strategy effectively, a company needs to accurately evaluate the creditworthiness of potential debtors before approving or denying a loan.
In a Sentence:
- The RO Lincoln’s management excels at credit control, which helps them maintain steady profits year after year.
- Recently, we’ve made some bad credit control decisions, giving out loans to partners who proved to be uncreditworthy.
- Talansky Inc. has hired two employees whose sole task is to watch over credit control and determine which business partners deserve good credit.
Synonyms and related words: credit management, credit risk, delinquent account, credit agency
