Sinotrust perceives that around 80% of the doubtful accounts in China actually result from negligence and inadequacy in proactive measures, and the rest 20%, even being collected through legal action, cost much more than the accounts paid in.  Building an effective credit risk management function in a company often puts credit risk management in conflict with the sales department.

Fu Junsheng, Consulting Director, Sinotrust Credit Risk Consulting Services discusses a number of key principles for systematic credit risk management:  Sinotrust Opinions_Key Principals for Credit Risk Management

 Source:  Sinotrust China