Why have the authors decided to
publish Global Credit Management in Chinese?
There are two major reasons:
Firstly; Chinese firms are
currently suffering badly from a credit management crisis, not only in
international trade, but also in domestic transactions. In 2004
Chinese firms accumulated bad debt up to
a value of US$100 billion, which is about 20% of the estimated
total trade profit. Moreover the bad debt total is growing by an
additional $15 billion per annum. The crisis is equally severe
in domestic transactions. The average delay in payment is 90 days;
while it is 7 days in the USA. The average bad debt rate in
Chinese firms is 5% to 10%; while it is 0.25% to 0.5% of sales revenue
in the US.
Secondly; Finding a way to train
and educate Chinese firms to manage credit is extremely important for
the health of the Chinese economy.
The most important strength of this book is that it has been written
from a practitioner’s perspective. It
covers almost all aspects of the complete practical process of credit
management. It starts from the
strategic height of credit management, systematically presents how to
manage customer risk, country
risk, and goes on to explain the actual credit management tools and
their respective strengths and
weaknesses. It reads very clearly and the style is refreshing.
It provides a useful guide for professional
managers new in the field, and is an inspirational book for those