Golovko Olena, PhD in Economics, Associate Professor, Associate Professor of Finance, Banking and Insurance Department Kharkiv Educational and Scientific Institute of SHEI «Banking University», Kharkiv, Ukraine

ORCID ID: 0000-0001-6502-4562
e-mail: elena.golovko13@gmail.com

Gubarev Oleksandr, PhD in Economics, Associate Professor, Associate Professor of Management and Administration Department, Kharkiv State Academy of Culture, Kharkiv, Ukraine

ORCID ID: 0000-0002-7362-6456
e-mail: gubarev.ao1966@gmail.com

Ponomarova Alina, Master of Kharkiv Educational and Scientific Institute of SHEI «Banking University», Kharkiv, Ukraine

ORCID ID: 0000-0002-4861-5229
e-mail: aj.ponomarova@gmail.com

Improvement of Credit Ability Management of Enterprises

Abstract. Introduction. The article substantiates the necessity of credit management, reviews the concept presented by various researchers. The methods of credit worthiness are systematized by the different types. The critical analysis allowed us to formulate our own definition of “enterprise creditworthiness”. Through the «five c» rule the constituent criteria for enterprise’s creditworthiness assessing were revealed. There were character, capacity to pay, cash, collateral and conditions.

Purpose. Developing of theoretical provisions and practical recommendations for improving the enterprise’s credit management level are the main article purposes.

Results. Objective assessment of the financial company position and consideration of possible risks are the key factors in effective credit management, which can help to prevent unjustified borrowing, ensure timely and complete repayment of loans, reduce the risk of non-payment and improve the efficiency of management. Effective creditworthiness management requires the integration of the retrospective development and prospective analysis with a large-scale involvement of the economic-mathematical methods and modern information technologies. It’s urgent to develop a comprehensive model of enterprise’s credit management that would consider inflation risk, industry and production features of the entity.

Conclusions. The methodical approach to estimate creditworthiness of enterprise has been proposed in the article for enterprises. We had analyzed the credit ratio in dynamics for PJSC «Kharkiv biscuit factory». In our opinion, for improving the credit management level, the enterprise should pay attention to receivable management, setting a limit on receivables, the excess of which must cease to provide services to a debtor.  However, it’s still the major indicators for improving the quality of credit assessment are focusing on industry-specific business characteristics, business size and management quality assessment will help borrowers. So, the main positions and conclusions of the research, were given in the article, can be used in enterprise’s practical activity.

Keywords: financing; attracted capital; creditworthiness; management; bankruptcy diagnostics; methods of creditworthiness assessment; financial condition.

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