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how important is credit and collection? why ? support your answer with situational example​

Sagot :

Noahosmonthidn

Credit and collections are very important to a business as it helps in the overall financial to the business. It enables the business to have a good credit rating. If a business does not have a good credit rating then it runs a greater risk of having a tax lien or having a contract enforcement by a bank or an investor.

In the case of a company dealing with clients, if it has a good credit rating then it will be easy for the company to collect the money from their clients. If the company has a bad credit rating then it is less likely to recover the money from their clients.

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