Supertraders Ltd is experiencing severe liquidity problems, which you, as a business consultant, have been asked to investigate. You have identified the problem as being caused principally by a very poor trade credit system, with no member of staff responsible for managing trade credit.

Your major recommendation is that the business appoints a credit manager.

(a) Outline the job description of the person to be appointed as credit manager.

(b) Set out the main headings that you would advise the new credit manager to consider, in respect of each of the following:

(i) assessing a particular customer’s creditworthiness;

(ii) major sources of information that can be used to assess a customer’s creditworthiness; and

(iii) addressing a proposal to alter the business’s credit policy.