Study On Credit Management Of South Certification Corporation

Commodity transactions among enterprises are built on the basis of commercial credit,and credit sales is one of its main transaction modes. What is more, commercial credit hassuperior advantages over other methods of setting accounts in the aspects of salesamplification, market expansion, cost reduction in company, consolidation of marketcompetitive advantage and position, and etc. At the meantime, with the excessivedevelopment of commercial credit, accompanied by credit business, the accountsreceivable problems among enterprises are increasingly serious. These problems result inprogressively high ratio of bad debts which will lead to the deduction of profit and evensuccessive loss, and difficulty to maintain business and being forced to bankruptcy or finalreorganization.South Certification Corporation （not true name, abbreviation as South Corporation）is the China branch of the famous German international certification company, in whichthe features of accounts receivable can basically reflect the situation of the entirecertification industry. It is of great practical significance to have research on SouthCorporation’s accounts receivable management so as to understand the operation ofcertification industry’s credit management, the control of corporation’s operational riskand final realization of corporation’s profit.With the overall decline of world economy and increasing intensification of nationalcertification industry competition, the weaknesses of accounts receivable problems inSouth Corporation are more and more prominent. It is of great significance to create creditmanagement model which is suitable for corporation’s operational model and the internaland external environment，because credit management model can improve accountsreceivable management, upgrade industry competition, seize market share rate, polish upcustomer relationships and etc. This thesis is based on relevant theories of accountsreceivable and does analysis of operational environment and credit management in SouthCertification so as to investigate the way to perfect accounts receivable management byconsummating credit management system. On the basis of present analysis, this thesis is to put forward improvement plan of accounts receivable management by drawing lessonsfrom the research on relevant articles at home and abroad and successful practices fromother corporations. The purpose of this improvement plan is to give contributions to theoptimization of operational performance in South Corporation and the advance in accountsreceivable management level.This thesis is supposed to realize the following creative points. Firstly, it is possible tosummarize suitable accounts receivable management system which is suitable forcertification corporations by connecting characteristic of certification industry and theoryof accounts receivable. Secondly, the whole credit management concept applies toaccounts receivable management system which will enrich the content of relevanttheoretical research. Thirdly, it is reasonable to combine theoretical research with thecompany practical research so as to realize that theory can instruct practice and practicecan improve theory.