Credit Sales Research Articles

Credit Scoring Model Weighted by Investment and Financing Decisions: Case Study in a Building Supply Store

Current literature provides various models for credit risk analysis, called Credit Scoring Models (CSMs). However, these models are not suited to the majority of Micro and Small Enterprises (MSEs). This is compounded by a lack of technical knowledge of microentrepreneurs linked to the high costs and complexity of the CSMs. These issues are significant as 99% of Brazilian companies are MSEs. Therefore, this paper aims to propose a CSM for an MSE that commercializes construction materials in São Paulo, Brazil. This research is quantitative and characterized as a case study whose CSM is based on the Naive Bayes algorithm implemented in Microsoft Office Excel 2016. This model calculates the probability of default and adherence by weighting the results based on the Modern Finance Theory with the Cost of Denying and the Cost of Granting. The application of the model demonstrates that the successes in approvals (70%) and disapprovals (66%) of Credit Sales were significant with a result of R$ 32.20 thousand and an increase in net profit by 124.2%. We have evidenced that the proposed CSM is able to weigh the risk in investment and financing decisions for the Credit Sales of an MSE. This paper provides a low-cost CSM, adapted to reality and easy to handle and implement in MSEs. This research is a reference to the development of CSMs focused on the credit concessions conducted by MSEs.

AKAD BAI’ AS-SALAM DALAM PENJUALAN HEWAN TERNAK SECARA INDEN DALAM PERSPEKTIF HUKUM EKONOMI SYARIAH

Many people are still unaware of the bai’ as-salam contract in the pre-sale of livestock from the perspective of Shariah economic law. Additionally, articles and journals discussing research on pre-sale of livestock are still relatively scarce. This research aims to contribute thoughts to the community regarding the bai’ as-salam contract in the pre-sale of livestock within the perspective of Shariah economic law at PT Seventeen by Thirty-Six. This qualitative research involves data collection through observation and interviews. The findings of this study indicate that from the perspective of Shariah economic law, the practice of bai’ as-salam contract in the pre-sale of livestock at PT Seventeen by Thirty-Six for sacrificial animals is in accordance with Shariah economic law, as it fulfills the conditions and requirements of pre-ordered sales (bai’ as-salam). However, in the implementation of pre-sale of sacrificial animals, there are instances where it does not fully comply with the bai’ as-salam contract. This is due to some loyal customers who request compensation in the form of payment postponement after the delivery of the order. With the postponement of payment, legally, the contract changes from a bai’ as-salam contract to a credit sale.

Effect of Accounts Receivable Practice on Value of Listed Manufacturing Firms at Nairobi Securities Exchange in Kenya

Purpose: Effect of accounts receivable management practice on listed manufacturing firms value at NSE, Kenya Design/Methodology/Approach: Causal design adopted on 8 manufacturing firms listed NSE. A five year secondary data was hence attained for 2017 to 2021 years. Data presented through tables was inferentially computed. Findings: Accounts receivable management practice had a significant association with value of listed NSE manufacturing companies Kenya Implications/Originality/Value: The study recommends that credit sales and cash sales should be checked to ensure that accounts receivable management practice is effective.

PENGARUH HARGA JUAL DAN SYARAT KREDIT TERHADAP PENJUALAN KREDIT PT HOME CREDIT INDONESIA CABANG SURABAYA

As the economy changes after the pandemic storm in all countries, especially Indonesia, many parties move very quickly, everyone must survive to survive, from national business corporations to small and medium class MSMEs to develop their businesses. The development of the business provides significant benefits for the company or business, which has an impact on increasing company profits. The company's goal is to sell goods to consumers and users both directly and digitally, so it is necessary to carry out effective and efficient sales. Sales usually consist of sales of goods and services, both cash and credit. Research conducted by Syarial, (2015), shows that the results of his research have a positive and significant effect on purchasing decisions, in this case researchers purchase using credit sales. The rise of credit sales in various regions both online and offline, many people from various walks of life to follow the latest trend. Technological advances have made many digital platforms appear. One that is widely used because of the convenience provided is the sales application. Because of this phenomenon, researchers are interested in examining Credit Sales at PT Home Credit Indonesia Surabaya branch studied through credit prices and credit terms. The purpose of this thesis is to find out the selling price, credit interest rate affects the credit sales of PT Home Credit Indonesia Surabaya branch, Validity test, reliability test, multiple linear regression statistical test, F test, and t test are used in this influence research, a non- experimental quantitative research method. The results found that credit sales (Y) were influenced by selling price (X1) and credit terms (X2), and both variables were influenced by credit sales (Y) if tested simultaneously.

Pemberian Pinjaman Kredit dalam Perspektif Pemikiran Ekonomi Islam

The purpose of this article is to explain the credit system that exists at the moment. The method used is to study the theories of riba and its prohibitions contained in the Quran and Hadith. Through this study, it can be conceptually formulated Islamic economic practices, especially in terms of financing by buying and selling system. The results of the discussion showed that the Basic Rules of credit sales are allowed. Shaykh Ibn Usaimin said: buying and selling on credit is someone selling something (goods) at a certain price and immediately paying it off, this is allowed according to the original law in accordance with the command of Allah QS. Al-Baqarah: 282. In this case, the Medan City Government Civil Servant Cooperative (KPN Pemko Medan) in its work system has not been separated from ribawi elements that are not in accordance with Islamic economic principles.

A framework for modelling customer invoice payment predictions

By offering clients attractive credit terms on sales, a company may increase its turnover, but granting credit also incurs the cost of money tied up in accounts receivable (AR), increased administration and a heightened probability of incurring bad debt. The management of credit sales, although eminently important to any business, is often performed manually, which may be time-consuming, expensive and inaccurate. Such an administrative workload becomes increasingly cumbersome as the number of credit sales increases. As a result, a new approach towards proactively identifying invoices from AR accounts that are likely to be paid late, or not at all, has recently been proposed in the literature, with the aim of employing intervention strategies more effectively. Several computational techniques from the credit scoring literature and particularly techniques from the realms of survival analysis or machine learning have been embedded in the aforementioned approach. This body of work is, however, lacking due to the limited guidance provided during the data preparation phase of the model development process and because survival analytic and machine learning techniques have not yet been ensembled. In this paper, we propose a generic framework for modelling invoice payment predictions with the aim of facilitating the process of preparing transaction data for analysis, generating relevant features from past customer behaviours, and selecting and ensembling suitable models for predicting the time to payment associated with invoices. We also introduce a new sequential ensembling approach, called the Survival Boost algorithm. The rationale behind this method is that features generated by a survival analytic model can enhance the efficacy of a machine learning classification algorithm.

Evaluation of the Implementation of Credit Sales System Procedures

Credit sales are a method used by many companies to increase sales volume by allowing customers to pay for products or services in stages. In an accounting context, credit sales systems require accurate recording and efficient management to ensure that receivables are collectible and the risk of loss is minimized. This article reviews the basic concepts of credit sales, including accounts receivable, provisions for bad debts, and recording credit sales journals. The benefits of credit sales in accounting include increased sales, better management of receivables, and preparation of accurate financial statements. The main challenges faced are bad debt risk, creditworthiness assessment, and receivables monitoring and collection. Implementation of technology such as ERP systems helps in automating record keeping, credit risk analysis, and more efficient reporting. With proper management and technology support, a credit sales system can be an effective tool in a company's financial strategy, minimizing risks and ensuring healthy cash flow.

Decision Support System for Motorcycle Credit Sales Using the Multi-Factor Evaluation Process Method at CV. Lestari Motorindo, Palembang Branch

CV. Lestari Motorindo is a company operating under PT. Astra CV. Lestari Motorindo, a subsidiary of PT. Astra Indonesia, specializes in motorcycle sales. Their credit purchase process involves gathering customer data for submission to leasing companies for verification, customer surveys, and creditworthiness assessment. Determining creditworthiness for motorcycle purchases is a complex task. Therefore, a Decision Support System (DSS) is needed to assist the marketing and admin teams in providing accurate creditworthiness recommendations.This research employs the Multi-Factor Evaluation Process (MFEP) method as the decision-making framework. MFEP is chosen due to its ability to streamline the process and enhance data validation, eliminating discrepancies between leasing companies and dealers. The MFEP-based DSS for credit applications is an accessible system for both parties, ensuring that decisions made by the DSS are valid for both leasing companies and dealers.

Effect of Accounts Receivable Practice on Value of Listed Manufacturing Firms at Nairobi Securities Exchange in Kenya

Purpose: Effect of accounts receivable management practice on listed manufacturing firms value at NSE, Kenya Design/Methodology/Approach: Causal design adopted on 8 manufacturing firms listed NSE. A five year secondary data was hence attained for 2017 to 2021 years. Data presented through tables was inferentially computed. Findings: Accounts receivable management practice had a significant association with value of listed NSE manufacturing companies Kenya Implications/Originality/Value: The study recommends that credit sales and cash sales should be checked to ensure that accounts receivable management practice is effective

REVIEW OF FUNDING PROCEDURES ON PT FIFGROUP CILEGON BRANCH

Purpose - In the world of trade in goods and services, the types of transactions that are commonly carried out are payment by cash or credit. PT. Federal International Finance is one of the actors in the business world engaged in business Honda motorcycle credit sales financing. Total financing is dominated by credit. This is done primarily in addition to attracting as many buyers as possible also to make it easier for consumers to manage cash Design/methodology/approach - Financing credit sales of Honda motorcycles to PT. FIFGROUP uses a system and credit financing procedures. The purpose of this study is (1) to analyze the effectiveness of procedures for providing credit funds to customers at PT. FIFGROUP Cilegon Branch (2) To analyze the customer's bad credit control system PT. FIFGROUP Celeron Branch Finding - Observations were made on the results of this study shows In analyzing the feasibility of granting credit to consumers, besides using 5C analysis the company also uses five parameters feasibility in analyzing whether or not the prospective debtor is financed credit, this proves that the company has carried out the process credit approval in accordance with procedures established by the company. Appropriate division of tasks and segregation of functions is control internal company which is one way to minimize risk uncollectible accounts receivable. Keywords: procedures, assessment procedures Automotive.

Machine Learning Based Risk Management of Credit Sales in Small and Mid-Size Business

This is a study that uses ML algorithms applications for effective credit risk prediction and management in small and mid-size businesses (SMBs). One of the ways this was achieved was by using comprehensive data sets, which consisted of historical credit sales transactions, customer demographics, and economic indicators. As a result, four specific ML algorithms, namely logistic regression, decision trees, random forest and gradient boosting, were assessed as the methodology. Findings show that gradient boosting yielded the best results, reaching an accuracy score of 90 %, precision of 89 %, recall value of 91 %, F1-score of 90 %, and area under the receiver operating characteristic curve is 0.95. Logistic regression has shown highly competitive results, in excess of 85% accuracy, and an AUC-ROC of 0.91. The findings demonstrate that credit history, the income level, and the age of the client are the most critical features in credit risk analysis of the SMBs.

IMPACT OF RECEIVABLES MANAGEMENT ON PROFITABILITY WITH REFERENCE TO TIFSCO PVT LTD

Effective receivables management is a cornerstone of financial health for any business. Accounts receivable represent money owed by customers for goods or services delivered, and efficiently collecting these outstanding payments directly impacts a company's profitability. This research project delves into the intricate relationship between receivables management strategies and a firm's bottom line. We aim to explore how practices like credit policies, collection procedures, and credit analysis techniques influence profitability metrics. The core of the investigation lies in understanding how efficiently companies convert credit sales into actual cash flow. A central focus will be on analyzing the impact of receivables management on key profitability ratios, such as return on assets and operating profit margin. We will explore how factors like the speed of collections, measured by days sales outstanding (DSO), affect a company's ability to generate profits. The research will also consider the potential trade-off between stricter credit policies that might reduce bad debts but also limit sales volume. By examining real-world examples from various industries, the project aims to establish a clear understanding of how sound receivables management practices contribute to a company's overall financial success. The findings of this research can provide valuable insights for businesses to optimize their credit and collection strategies, ultimately leading to improved profitability and a more sustainable financial position. During economic slumps, customers might face financial difficulties, leading to delays or defaults on payments, impacting a company's cash flow and profitability. Granting credit to customers with a high risk of default can lead to bad debts and erode profitability. Lengthy and cumbersome collection procedures can delay the inflow of cash and hinder a company's ability to reinvest in growth opportunities. Poor communication with customers regarding payment terms and overdue invoices can lead to misunderstandings and delays in collections

Tinjauan Atas Prosedur Penjualan Rumah Secara Kredit Pada Perumahan Royal Tajur Residence

The procedure for selling a house on credit is a house selling process where the buyer can pay in stages over an agreed period of time. Fulfilling housing needs is an individual right that is entirely the responsibility of each individual. In this context, developers position themselves as facilitators in meeting housing needs. The development of property and banking has recently been quite rapid, making it easier for individuals to own a house on credit. The purpose of this writing is to find out that the procedures for selling houses on credit carried out at the Royal Tajur Residence housing complex are in accordance with applicable regulations and can be accounted for as well as identifying obstacles and obstacles that may be faced in the process of selling houses on credit. The results of this writing show that The procedure for selling houses on credit at the Royal Tajur Residence housing complex is in accordance with applicable regulations. The evaluation results in this writing show that the procedure for selling houses on credit at the Royal Tajur Residence housing complex has been successful in achieving the objectives of the writing. However, there are several aspects that need to be improved by developers, such as providing clear and transparent information regarding credit requirements that must be met by consumers before making a purchase, evaluating potential consumers and avoiding giving credit to consumers who have a history of bad credit or financial problems as well as providing useful information. clear and transparent regarding the time of delivery of credit objects. Keywords: developer, property, credit sales.

Commercial paper popularization and enterprise risk taking

This paper constructs accounts receivable commercial paper indicators based on the choice of payment instruments when enterprises sell on credit and selects listed manufacturing enterprises from 2015 to 2022 as data samples for the study. It is found that increasing the proportion of commercial paper payments in credit sales can effectively mitigate the risk-taking of enterprises; the establishment of the Shanghai commercial papers Exchange has effectively standardized the commercial paper market, which further improves the efficiency of financing and effectively enhances the mitigation effect on the risk-taking of enterprises.

Influence of working capital efficiency on firm’s composite financial performance: evidence from India

PurposeThe objective of this paper is to investigate the effect of working capital efficiency (WCE) and its components on the composite financial performance of a sample of Indian firms.Design/methodology/approachOur sample includes 796 non-financial listed firms from 2015–16 to 2021–22. Sample firms’ profitability, liquidity, solvency, cash flow management, and financial and operational leverage have been used to classify them into companies with high composite financial performance (HCFP) and with low composite financial performance (LCFP) by using K-Means Clustering technique. A composite financial performance score (CFPS) of 1 has been assigned to HCFP and 0 to LCFP. We have used logistic regression models with fixed effect to estimate the effect of cash conversion cycle (CCC) and its components, i.e. inventory days, accounts receivable days and accounts payable days on CFPS in the presence of control variables such as growth, leverage, firm size, and age.FindingsThe study finds that CCC and inventory days are inversely associated with CFPS. This finding shows that the firms’ WCE leads to superior financial performance on a composite basis.Research limitations/implicationsThe research findings are based on samples drawn from the population of the listed Indian non-financial companies. Since the operation, financial practices, working capital policies, and management styles of firms vary greatly among nations, the results of this study should be extended to firms in other countries after taking into account the degree of resemblance to the sample firms.Practical implicationsThe findings of this study hold significant value for industry practitioners, as they provide guidance in determining the optimal allocation of funds for working capital and devising strategies for effectively managing inventory levels, credit sales, and vendor payments in order to increase the overall value of the company. This study aims to help investors in building their investment portfolios by identifying companies with superior composite financial performance. Investors can enhance the construction of their investment portfolios by strategically selecting companies that demonstrate superior overall performance.Social implicationsThe results of our study will help companies improve their WCM strategies to enhance their overall value, and their significance increases manifold during economic downturns. Business firms that perform well by efficiently managing their working capital have a multiplier effect on the economy and society at large in the form of GDP contribution, labor income, taxes to the government, investment in capital assets, and payments to suppliers.Originality/valueTo understand the impact of WCE on firms’ performance, the extant working capital literature focuses on some specific characteristics such as profitability, valuation, solvency, and liquidity. The limitation of employing a single parameter is its inability to present the comprehensive performance evaluation of firms. This study is among the earliest studies that focus on the holistic evaluation of WCE's impact on the composite performance of a company.

Sistem Informasi Akuntansi Penjualan Tunai Dan Penerimaan Kas Berbasis Multiuser Pada Toko Harnova Tanggungharjo

In the modern and instant era of globalization, companies are required to be able to compete in improving performance and be able to produce appropriate reports. In a trading company, sales are the main activity to generate profit. Good sales and recording procedures and in accordance with company needs can be carried out with a sales accounting system. Sales themselves are divided into two, namely cash sales and credit sales. In this study, the intended sales accounting system is the cash sales accounting system.This research was conducted at the Harnova Tanggungharjo Store, where the Harnova Store is a company engaged in the sale of clothes. Cash sales and cash receipts are very important in an agency, because cash is an important asset. In recording sales and cash receipts, this agency still uses manuals. A computer is a tool that can store data, process data and provide useful information for companies to advance their companies.This study designs a system that can help companies calculate sales and cash receipts. With the cash sales information system and cash receipts, it is expected to be able to carry out procurement, planning and sales supervision very well. besides that it can also produce reports that are precise, accurate and efficient. The software that I use is Microsoft Visual Basic 6.0 with SQL Server 2000 database

Machine Learning-Based Risk Management of Credit Sales in Small and Midsize Business

Sustaining and expanding the finances of small and midsize companies (SMBs) depends on efficient credit risk management. This study redefines credit risk assessment for SMBs via the use of machine learning (ML), hence introducing a disruptive methodology. The all-inclusive approach includes feature selection, preprocessing, data collecting, and the use of ML models, with an emphasis on behavioral insights integration and real-world applicability. The results imply that Random Forests and other machine learning models are superior at predicting credit risk, which may lead to a sea shift in the way SMBs handle credit risk. Improving the research's practical implications involves applying models to actual credit risk management systems and incorporating insights from behavioral economics. Possible future research directions include studying how models adapt dynamically, using different types of data, enhancing explain ability via XAI, and fostering collaborative efforts to develop industry-specific best practices. By outlining the ins and outs of credit sales, this research helps small and medium-sized companies (SMBs) adjust and remain resilient in the face of changing market conditions.

Towards environmental sustainability: further evidences from decarbonization projects in Kenya’s Blue Economy

Kenya is committed to the global efforts on climate change mitigation and adaptation as seen through investments in various sustainable green and blue economy projects. In this review paper, we present the current status of what has been done, particularly on the blue carbon offset initiatives undertaken in the mangrove and seaweed ecosystems as well as the decarbonization activities at the port of Mombasa and which should form reference information for local, regional, bilateral/multilateral partners, scientists and other climate change stakeholders. The blue carbon offset projects involve mangrove conservation, reforestation and carbon credit sale as well as seaweed farming. The initiatives have several unique features amongst which are the community-led income generation systems that simultaneously act as an inducement for ecosystem preservation, co-management and benefits sharing which are recipes for economic, socio-cultural, and environmental sustainability. A notable project impact is the conferment of economic power to the locals, particularly the women and the youth The model used embraces a collaborative approach involving multisectoral engagements of both the government, multilateral organizations, NGOs, and local communities. This integrated top-down (government) and bottom-up (local community) method deliberately targets the strengthening of economic development while ensuring sustainability.

Intelligent Optimization Model of Enterprise Financial Account Receivable Management

As a key component of enterprise assets, accounts receivable play an important role in enterprise financial management and determine the long‐term development of enterprises in the later period. In order to minimize the financial risk brought by the credit sales of enterprises, this subject studies the intelligent optimization of enterprise financial account receivable management. BP neural network and K‐means clustering algorithm are used to evaluate the risk of account receivable and the owner’s credit, respectively. The account balance accounts for 45.20% of the total amount, and the risk rating of accounts receivable is 4. The training result of BP neural network algorithm has high accuracy. With K‐means clustering algorithm, accurate evaluation of owner’s credit can be achieved, which can provide reference for optimization of enterprise account receivable management mode.

ON THE ISSUE OF RECEIVABLES MANAGEMENT / ԴԵԲԻՏՈՐԱԿԱՆ ՊԱՐՏՔԵՐԻ ԿԱՌԱՎԱՐՄԱՆ ՀԱՐՑԻ ՇՈՒՐՋ

In order to maintain a sustainable position in the market, suppliers usually cater to the wishes of customers and often allow for a delay in their payments, resulting in the accrual of receivables in organizations. Accounts receivable is an important component of working capital, the majority of which in organizations is generated from the credit sales of products and goods. The skillful management of receivables is important for ensuring the normal operation of every organization, one of the main tasks of which identification of overdue debts on time, including unreliable debts, the analysis of their causes, as well as the development of measures aimed at settlement. The main goal is to accelerate the circulation of funds and increase the efficiency of use. The implementation of control over receivables is an important part of the company’s financial policy and is necessary to ensure its effective current activity.