Learn in the textbookData Utilization Processing and Business Applications
DefinitionCredit management (与信管理) is the work of assessing whether customers buying on deferred terms can pay and setting a credit limit (与信限度額), the ceiling on uncollected amounts, to prevent bad debts (貸倒れ).
ExplanationA bad debt (貸倒れ) arises when payment for a sale can no longer be collected. The part of the limit still usable is the available credit (与信の余力). Payment records then feed into revising the limit or changing the trading terms.
AnalogyLike the limit on a credit card. Spending shrinks what is left, and repaying restores it.
Memory hookThe kanji in 与信 literally mean "give trust". Allowing a customer to pay later is exactly that.