.One of the most, if not the most, important activities in your company is credit management. Credit management is the process to ensure that customers will pay for the products delivered or the services rendered. CM Software supports this process. Credit management is of vital importance to your cash flow: you can be profitable, but if you lack the cash to continue your business, you will either be bankrupt or taken-over by someone who knows how to deal with cash.
Customers that have not yet paid are called accounts receivables (AR). The problem with AR is that this is money owned by your company (AR is also called debtors!) over which you do not have any control. There are two huge disadvantages with AR.