What is the Credit Control Objective?

Since, in order to maintain self adjuting machanism for working capital adjustment and to avoid extenal financ from financial instituition, business should be able to adjust its working capital requirement for receiables and inventory through from payables.
The credit control basically deals with Managing your receiables, so that they can be realised timely, although business has advantage of getting high return on credit sales but at the same time it can results in bad debts so the prime objective of Credit Control is to avoid such a situation where a business has to face such alarming receiveables and for that purpposes the credit control departments have follow up schedule for monitoring payable and have policies in understanding their client with satisfactory repayment track records.

Credit Control plays an important role in the business, its objectives consist of increasing the revenue by extending credit to good risk assessed customers, and minimizing debts by keeping track of existing customers and their credit worthiness.
Keeping a good relationship with existing and potential customers plays a huge part in establishing the number of days credit is extended on monthly basis.
This is especially a good tool if used effectively, by keeping in contact with your customers you familiarize them with the company’s rules and in keeping a healthy business relationship by building a trust.
Customers tend to pay back their debts to those they feel comfortable before paying creditor that “lets go”.
Another useful tool in Credit Control is cash forecasting, this helps in planning monthly cash collection target, adhering to the forecast will minimize the risk of bad debts.
One of the major downfalls of the companies is that they don’t train their Receivables employees to follow up with their customers.
The older the invoices get the harder it becomes to collect on them.
All customers should be made clearly aware of the terms of agreement, there signatures must be on all invoices, invoices must always be documented, and notes should be written in the customers’ accounts regarding any communication that took place.
Managers shouldn’t have to chase their subordinates to get information, it should be readily available.
Last but not least, managers should create Receivables manual which outlines step-by-step procedural objectives.

The credit control objective from my point of view is to controller all the company credit facility and this will lead to improve the cash flow and the copmany's liquidity 

 

to reduce the risk of defult payments by using prober credit analysis and AR tracking

the main purpose of credit control is to see that the funds available with a firm are optimally utilised.

maximizing cash flow and reduce credit collections risks

The  credit control  of  objective   only  depending on recovery  payment , that  is under trams  and  condition  witch  between costumers . that will be  incriminate  to  system and in creditable to costumers  by   easily  growth up   to  business .  looking   at   the  system and   costumers are   objective of   all  business  pilot  .  both are  credit  and  cash  rounding  to  on system policy.

   

Purpose of credit control is to make sure that cash flows are not disbursed owing to delayed receivables, whether against sales in companies whereas in financial institutions it refers to controlling overdue receipts under loan installments etc.
It also means controlling the liquidity position of an enterprise.

The main objective of the controlled transaction is a credit-free installments of legal flaws, and a mechanism of action to give certain approvals for the transaction, the spectrum according to the client's salary and place of business, and the link between them and the legal department to complete the legal transaction.
In my opinion, this is the fundamental objectives of credit control