1919 Company's Effective Credit Management System for Stable Income and Reduced Bad Debts

1919 Company implements rigorous credit checks on potential franchisees, assessing their credit risks to prevent problems before collaboration. It establishes an appropriate account management and monitoring system to prevent delayed or refused payments, and negotiates payment policies, conditions, and deadlines based on the counterpart's actual situation. The company tracks and monitors the counterpart's economic status in real-time to adjust aging of accounts and re-evaluate their financial and credit status. It incentivizes customers with good credit by offering discounts and removes those with poor credit promptly. If a customer's credit status changes, the company investigates the reasons and decides whether to continue doing business with them. This proactive management approach enhances account collection quality, shortens collection time, lowers bad debt occurrences, and improves income stability and turnover.