Businesses take on many forms ranging from sole proprietorships, partnerships, and close corporations to companies. The ability of these forms of business ownership to obtain and service credit depends not only on their financial circumstances, but also the knowledge and ability of the credit provider to assess the business' creditworthiness. For a business to be successful it must make a profit. The profit on a sale is not earned unless the money for the sale is in the bank on due date. It is also true that the longer it takes to collect the money from a debtor, the more difficult it becomes. Applied credit management teaches the learner all aspects of the credit management function of an organisation, from the evaluation of the new application, the investigation of the creditworthiness of the customer, the final approval or rejection to the collection and ultimate litigation of an account. All aspects of the National Credit Act (Act 34 of 2006) have been incorporated in the principles of this book.