Raising
capital can often be daunting. While you may have a certain flair in offering
your business solutions to end consumers, the mismanagement of new capital is something
that can derail your business plans entirely. This is where corporate
governance comes into play.
Companies with multiple stakeholders such as the public, the investors, the board of directors often have in place corporate governance. This takes care of the framework within which a company conducts its business. The board of directors and others vested in the economic growth of the company will often ensure that there are processes in place that maintains an investors faith in the organization. Why is this important? So that the company can continue to raise capital effectively and over longer periods of time.
The other incidental benefits of corporate governance are the fact that there is ultimate transparency in the way a business conducts themselves on a day to day basis, it also omits the wastages, internal and external corruption, reduces the risk of wasting capital and mismanagement of resources.
Another major factor that forms part of corporate governance is the process of credit management. Credit management involves putting in place all those systems that are responsible for granting credit as well as the process of setting the terms on the basis of which it has been granted. It is ensuring that the customers will be paying for the services that they have availed to. It also sets in place the terms on which the credit will be settled as well as the timelines that are to be followed at each step of the process. The main goal of credit management is to comply with the decided credit policy, amongst all the other credit involving processes and procedures.
When you raise more capital, it is always better to ensure that, together with the board of directors and other decision makers, you have a corporate governance system that has been put together for the smooth running of the organization – and for all the capital and credit that has been raised, there is a credit management process in place as well.
Companies with multiple stakeholders such as the public, the investors, the board of directors often have in place corporate governance. This takes care of the framework within which a company conducts its business. The board of directors and others vested in the economic growth of the company will often ensure that there are processes in place that maintains an investors faith in the organization. Why is this important? So that the company can continue to raise capital effectively and over longer periods of time.
The other incidental benefits of corporate governance are the fact that there is ultimate transparency in the way a business conducts themselves on a day to day basis, it also omits the wastages, internal and external corruption, reduces the risk of wasting capital and mismanagement of resources.
Another major factor that forms part of corporate governance is the process of credit management. Credit management involves putting in place all those systems that are responsible for granting credit as well as the process of setting the terms on the basis of which it has been granted. It is ensuring that the customers will be paying for the services that they have availed to. It also sets in place the terms on which the credit will be settled as well as the timelines that are to be followed at each step of the process. The main goal of credit management is to comply with the decided credit policy, amongst all the other credit involving processes and procedures.
When you raise more capital, it is always better to ensure that, together with the board of directors and other decision makers, you have a corporate governance system that has been put together for the smooth running of the organization – and for all the capital and credit that has been raised, there is a credit management process in place as well.
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