10.5 Dowling Ltd has a new Sales Manager who is keen to
improve process efficiency. She has reviewed the process
documentation for the sales cycle and has asked you to remove the
credit check as it is slowing down the sales process and she is
concerned Dowling Ltd is losing sales as a result.
(a) Should you agree to remove the credit check? Why or why
not?
(a) No, we should not agree to remove the credit check because it is very important to check the credit worthiness of the prospective buyers so that in future we dont have to face dealy in the collection of receivable or there may be chances that the buyer refuses to make the payment in such scenerio we would have to inititate the legal proceeding s for the recovery of money stucked . There will be chances that amount finally become uncollectible resulting in Bad debt for the company that will result in overall loss for the company for the money lost & expenditure of legal proces , hence it is very essential to do the credit check of the prospective buyers.
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