EPT Credit Management System Establishment And Implementation

With the development of market economy and fierce competition, the credit sale is more and more becoming a major mode of transaction, which brings the credit risk as well. A lot of bankruptcy happened due to the poor credit risk management. The enterprise has the poor sales or account receivables because of the poor cash flow, lack of good control of the credit risk and a systematic, scientific credit management system. China enterprise needs to be trained on the Credit Management.This article studies the case of EPT (FULL NAME), which used to get a big trouble in credit management. As the author, I have involved in the whole process of establishing and implementing a credit management system in the company.The idea and structure of this article is to firstly demonstrate in theory the importance and necessity of establishing a good credit management system inside a company, then take EPT as a real example, elaborate how to improve the internal credit management system, lastly discuss and analyze the difficulties and problems that may occur during the establishment and implementation.The article touches the following areas:- analyze the credit management difficulties and problems that most of the Chinese enterprise are currently facing; how important to build up a good credit management system- introduce some good credit management models implementing in some enterprises- take a real example (EPT) to demonstrate the importance and practicability to establish and implement a good credit management system inside the company- discuss and analyze some of the difficulties and problems that may occur during the establishment and implementationThe article uses the real example and quantitative methodologies to support the theories, and illustrate the arguments.The Whole Process Credit Management Model and 3+1 Scientific Credit Management Model were introduced how to be applied into the establishment of the Credit Management System in EPT which helped the company to solve the following problems: effectively control the credit risk, reduce the loss of bad debt, speed up the cash flow, improve the enterprise's internal management, increase the competitiveness in the market.As the author, I hope this article could provide the reader some reference and help them think how to enhance the credit management inside our Chinese enterprise.