Creditworthiness is a Technique of Cash Management- A Study on IT Sector

Abstract

It is the age of competitive environment. Sound credit management approach can ensure success in this environment. Credit analysis is actually risk analysis. In the competitive environment and changing scenario, every business organisation has been trying to overcome such situation. Due to failure in competition, market share, and economies in business, many small businesses walk in the path of mergers and acquisitions, and big giant organisation take the advantage. Now the companies are diversified into variety of products and services. Therefore, to make the organisation profitable some objective information is required. As a business firm grows or is taken over by giant organisations, the decision making process becomes more complex and centralized and the old traditional methods of credit analysis become misleading. So in this paper we tried to give importance to the credit management.

Keywords: Cash Management, Creditworthiness, Liquidity, Risk Description Model

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