Retail

1. PRESENTATION
ON
RETAIL CASHIER III
BY
MUSKAN KAUR
ROLL NO. 121320090017
SEMESTER – II
BATCH 2020 - 2023
SUBMITTED TO
MR. VENKATESH MUTYALA
BACHELOR OF VOCATION (RETAIL MANAGEMENT AND IT)
ST FRANCIS COLLEGE FOR WOMEN
BEGUMPET, HYDERABAD

2. TOPIC
Promptly investigate reasons for
missed payments and accurately record
the findings.
PC3
PC4
Identify customers who go over their
credit limits and reports the findings
promptly to the right person.

3. PC3 Promptly investigate reasons for missed payments and accurately record the
findings
 INDUSTRY-WIDE PAYMENT
PRACTICES
1. Some businesses pay late because of their
sales, receivables and inventory cycles, or
operational practices that are customary in
their industry.
2. Some industries are natural headaches for
receivables management, infamous for the
notorious delinquency rates (such as
construction and building supplies,
manufacturing, wholesale distribution).

4. PC3 Promptly investigate reasons for missed payments and accurately record the
findings
 CUSTOMERS WITH OTHER,
CRITICAL SUPPLIERS
1. You may not be ranked at the top of your customer’s
payment priority list.
2. Your product may not be critical to your customers’
business cycle, or your product may be easily replaced
by products from other suppliers.
3. Another important reason may be that your customer
has other suppliers that have more stringent credit
criteria. So, your customer pays them before paying
you.

5. PC3 Promptly investigate reasons for missed payments and accurately record the
findings
 CUSTOMERS WHO ARE IN
FINANCIAL DIFFICULTY
1. The reasons for this can be anything. Your
customer’s business may be going through
tough times and they really are unable to pay
you back.
2. This category carries by far the highest risk for
your receivables management.
3. Today, overall business bankruptcy rates are
lower than 2009 levels, however the failure rate
is still quite high in several industries.

7. PC4 Identify customers who go over their credit limits and reports the findings promptly to the right
person
 THE NET WORTH CALCULATION
1. The result of this calculation gives you a credit limit
based on the customer’s net worth, limiting your risk
and providing strong credit limit benchmarks based on
concrete financial information.
2. A best practice is it to limit the credit offered to 10% of
the customer’s net worth.
3. The first step is to attain the company’s financial
information, this can be done by requiring them to fill
out a credit application.
4. After receiving the information, the balance sheet
should include the customer’s total assets and total
liabilities.

8. PC4 Identify customers who go over their credit limits and reports the findings promptly to the right
person
From there you can work the equation:
Net Worth =
(customer’s total assets-total liabilities) / 10.
1. The result will be 10% of the customer’s net
worth and a good benchmark for setting their
credit limit.
2. You may also consider basing their limit on 10%
of the customer’s working capital or average
monthly sales.

9. PC4 Identify customers who go over their credit limits and reports the findings promptly to the right
person
 TRADE REFERENCE CALCULATION
1. Trade references found on credit reports or by
contacting the references provided by the customer on
their credit application.
2. An idea of how much other creditors or competitors
have extended to the customer, something you can
mirror if it seems fitting.
3. Another way to use trade references to set credit limits
is by finding the median value offered by other
creditors.

10. PC4 Identify customers who go over their credit limits and reports the findings promptly to the right
person
 NEEDS-BASED CALCULATION
1. You do not need to blindly offer them what they ask for,
taking it into consideration
2. It is vital to ensure you are offering them a limit to
satisfy their needs; an important part in building a
lasting relationship with the customer, one of the
benefits of offering credit terms in the first place.
These are separate calculations, it
is a commonly accepted best
practice to find the average of all
three of the above calculations.
Use that as your starting point for
setting the customer’s credit limit.
You can raise and lower the credit
limit based on other information
you have on the customer.
Through previous experiences
with them or information from
other sources such as a credit
report, liens against the company,
lawsuits, etc.

11. References
https://blog.fundinggates.com/
https://anytimecollect.com/

12. Thank You