Many businesses are facing liquidity problems in these difficult economic times, but one thing neither they nor their professional advisers can afford to ignore is how the company's financial health is viewed by the credit managers at key suppliers. Unnecessarily low credit limits absorb scarce cash resources, while a sudden cut in a credit limit can interrupt supplies; in extreme cases it can bring down a business. Accounting firms advising clients with credit profile issues can play an important role in helping them present their company in the best possible light. Credit risk management is now high on the agenda of suppliers as they look at the economic prospects for 2012 with increasing alarm as the year unfolds. They are determined to avoid unnecessary bad debts.
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