Businesses take on many forms ranging from sole proprietorships, partnerships, and close corporations to companies. The ability of these forms of business ownership to obtain and service credit depends not only on their financial circumstances, but also the knowledge and ability of the credit provider to assess the business' creditworthiness.

For a business to be successful it must make a profit. The profit on a sale is not earned unless the money for the sale is in the bank on due date. It is also true that the longer it takes to collect the money from a debtor, the more difficult it becomes.

Applied credit management teaches the learner all aspects of the credit management function of an organisation, from the evaluation of the new application, the investigation of the creditworthiness of the customer, the final approval or rejection to the collection and ultimate litigation of an account.

All aspects of the National Credit Act (Act 34 of 2006) have been incorporated in the principles of this book.

About the authors

Pieter and Christine Jordaan, a husband-and-wife team, are co-principals of Professional Business School, in Randburg. They have both had extensive academic training and exposure to the management and control of the Accounts Receivable function of a business.

Christine has a B.A. degree in Languages and Psychology while Pieter has a B.Com degree in Financial Management. They both have Master's degrees in Business Leadership and diplomas in Credit Management, as well as a variety of other management disciplines.

The authors are Fellows of the South African and the African Institutes of Credit Management and have contributed to the curricula of the present Certificate and Diploma Courses in Credit Management offered throughout Africa.