EDN: SRBUKC
Authors:
GARCIA CAYO Alvaro Rudy
Abstract.
Currently, due to the pandemic, the economy in many countries is experiencing times of restrictions within the country, in business, at the national and global levels, currently employers, large and small, are worried about how to maintain income levels in accordance with the needs of their business or, at least, avoid the constant deterioration of its economic indicators. Financial management of accounts receivable is a fundamental process in corporate finance, since it depends on whether the company has the necessary liquidity to meet its current obligations. The need to increase sales forces some companies to apply aggressive strategies that allow customers to make sustainable purchases; however, when making these kinds of decisions, they usually lose sight of the fundamental aspects that guarantee timely payment of debt. One of the most common disadvantages is the lack of a financial analysis of receivables, due to the fact that commercial loans are issued to individuals or legal entities that have a very high debt capacity, in many cases it is difficult for these organizations to fulfill their obligations, therefore, they generate serious consequences for the companies that provided the loan, due to non-payment of the loan, the cash flow of organizations suffers. Accounts receivable are considered part of financial working capital management, the main purpose of which is to coordinate the various elements of the organization to maximize its assets and thus reduce the risk of sales and liquidity crises, which is made possible by optimal variable management, commercial credit policies for customers and fund-raising strategies.
Keywords:
business, accounts receivable, debt capacity, income, customers, company, counterparties, credit obligations, obligations, buyers, financial analysis, financial management, fundamental aspects, economic indicators, efficiency
