Overview

This eCourse consists of two modules. Module 1 explains the process of cash collection and disbursement and shows how a firm can determine the cash balance that will minimize opportunity costs and trading costs. The use of money market instruments in cash management is also explored.

Module 2 discusses the issues e.g. assessing credit worthiness, trade terms, credit period, collecting payments etc, that firms need to address before decision can be made on offering credit terms to customers.

Objective

On completion of this course, you will be able to:
- Define 'cash' and explain why firms hold cash
- Describe the mechanisms firms use to disburse and collect cash
- Calculate the target cash balance
- List the major money market instruments and their features
- Explain the fundamentals of credit management
- Calculate the relevant ratios to determine the viability of a proposal
- Outline the procedures involved in the credit control process

Content

Module 1: Cash Management
Topic 1: Cash Collection and Disbursement
Topic 2: Cash Management
Topic 3: Determining the Adequate Cash Balance
Topic 4: Cash Management and the Money Market

Module 2: Credit Management
Topic 1: Terms of Sale
Topic 2: Credit Agreements
Topic 3: Credit Analysis
Topic 4: The Credit Decision
Topic 5: Collection Policy