Management of accounts receivable in conditions of economic crisis

The accounts receivable is the most important type of current assets of any enterprise. Its main component - receivables of buyers and customers - is formed through provision of commercial loans to customers, which, on the one hand, increases the sales and, on the other hand, diverts funds from the market, leads to a loss of value due to the inflation and a risk of non-payment. During any economic crisis such negative effects are especially noticeable, making the formation of receivables’ management system a crucial objective. The study considers the credit policy to be the basis for receivables’ management system and indicates the necessity of adjustment of its basic parameters in the context of economic crisis. The research speaks of the importance of debt collection procedures. The study also mentions factoring as an alternative method instrumental in organization of customers’ debt management. The need to manage other types of receivables is indicated as well.