Steps in Credit Appraisal
1)     Customer Evaluation—Character+Capacity+Capital+Collateral Security+Conditions (economic)
2)     Financial Stmts. of Customers
3)Â Â Â Â Â Bank references
4)Â Â Â Â Â Trade References
5)     Credit Bureaus
6)Â Â Â Â Â Bank & Third Party Guarantees
7)Â Â Â Â Â Field Visits
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Collection Methods
a) Centralised Collection System
b) Decentralised Collection System
c) Post dated cheques
d) Pay order/bank draft
e) Bills of exchange
f)Â Lock Box System
g) Drop –box System
h) Collection Staff
i) Debt Collector
j) Del Credere Agent— collection of debts + assumes risk of bad debts
gets additional commission.
k) Concentration Banking
l) Factoring
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