It provide an overview of the Compiere’s automatic and manual Credit Limit Management system and the additional features provided to a distribution company to streamline their Credit Management process.
In the current business scenario, credit is the lifeline of any business. Most of the transactions involve credit to Customers as there is severe competition among different business enterprises to capture new customers and improve their market share.
In their keenness to attract new customers some businesses provide more credits than what can be managed and end up in huge loss of revenue. If you let people buy products or services on credit, you are essentially lending money. If that money is not paid back, you could find yourself in a place where you can’t pay your rent or cover payroll, and then you’re damaging your own business.
So it has become imperative for any business nowadays to manage efficiently the Credits given to customers to avoid loss of profit.