Jeremy Priestley — A Brief Description of Receivables Management
Jeremy Priestley is a business development director in Sheffield, South Yorkshire. He started his career in the financial industry shortly after graduating from college. He took up a job as a trainee accountant but did not build a career in accounting. Instead, he moved into corporate restructuring. He went on to found a receivables management business from scratch which became a market leader with high-profile clients like Microsoft, Yahoo, and NetApp.
Receivables are also termed as trade credit and are when a company or business sells its products in credit and account receivables are created. Account receivables are the money that is receivable at a future date for the credit sale of goods at the present. Most companies transact in credit, and when they face competition, they use credit sales as a tool to promote sales. This sales promotion tool enhances the company’s sales revenue and eventually increases its profitability. Though credit sales do not bring in revenue immediately, they start coming into the company’s accounts as monthly payments later. But as the payments stretch out over time, it might create a substantial decrease in the firm’s profit margin. When this happens, the manager has to analyze and determine the effect of credit sales. Therefore, receivables management is the aspect of a company’s current assets management, which is concerned with defining the firm’s optimum credit policy so that the profit from the extension of credit is more than the cost of maintaining investment in accounts receivables.
Jeremy Priestley started a business working with receivables funders on audit and recovery work with blue chip clients.