New Delhi, Jan. 27 -- Credit and collection management is a process of providing credit to customers and making sure it is also collected. Sustaining financial stability depends heavily on efficient credit and collection management. Understanding what credit and collection management means is important to understanding how it works in the first place.

Giving customers credit, monitoring their payment schedules, and making sure that unpaid debts are collected is the process of credit and collection management. This should be done in a fair amount of time. The core of this concept is having the perfect balance between giving customers credit and lowering the risk of bad debts.

These management systems make sure that businesses can maintai...