Jump to ContentJump to Main Navigation
Working Capital Management$
Users without a subscription are not able to see the full content.

Lorenzo Preve and Virginia Sarria-Allende

Print publication date: 2010

Print ISBN-13: 9780199737413

Published to Oxford Scholarship Online: May 2010

DOI: 10.1093/acprof:oso/9780199737413.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2017. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a monograph in OSO for personal use (for details see http://www.oxfordscholarship.com/page/privacy-policy).date: 23 October 2017

Managing Account Receivables

Managing Account Receivables

Chapter:
(p.71) 6 Managing Account Receivables
Source:
Working Capital Management
Author(s):

Lorenzo A. Preve (Contributor Webpage)

Virginia Sarria-Allende (Contributor Webpage)

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199737413.003.0006

In this chapter, we discuss trade receivables and credit risk. We begin by providing a brief review of the main theories of trade credit. Next, we consider the credit risk embedded in firms' investment in trade receivables, and discuss how to correctly assess and manage the credit risk inherent in clients' trade credit. We continue by presenting several tools that can help creditors mitigate the effects of clients' defaults. Then, we focus on alternative mechanisms that allow firms to specifically finance their investment in clients, namely, factoring and the issuance of collateralized debt. Finally, we briefly review how trade credit can be measured.

Keywords:   corporate finance, working capital management, trade credit policy, trade credit management, accounts receivables

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .