Why Debt Management In current environment, business transaction is growing, however there is always a risk of not receiving your payments on time or can convert into Overdue/ Bad debts. This can seriously affect your business and shall impact business being liquidity is being compromised. Also Credit Management Process is equally responsible which will allow how much to sell and what's the maximum credit you can allow to an selected company. Credit Management is a tool that any company adopts to control the risks involved while extending payment terms to its customers, which protects the accounts receivables, a short term asset that helps better your cash flows and helps the company at the time of availing loans and credit lines.