Credit Management: Theory and Practice

With the UK and much of the economy in a recession the likelihood of businesses failing to
meet their debt obligations increases. This has been especially noted in the retail industry with
it facing a so called ‘retail apocalypse’ with Paperchase, Bonmarche, Debenhams, Arcadia and
many more all falling into administration over the last 12 months. This trend is not only limited
to retailers with all sectors feeling the impact of Covid and Brexit. To that end, a correct credit assessment of the risk involved with trade credit is essential for
any company selling on credit.

Prepare a 2,000-word credit report into one of the following companies that addresses the
following elements:
• Practical application of credit assessment approaches
• A suitable credit rating assigned to your chosen company

Select one of the following companies to base your report on, I have selected these on
the basis that they are standalone companies and not part of a wider corporate conglomeration
as is common in business but greatly increases the complexity of credit assessments, beyond
the scope of this module.
• Bakkavor Group Plc
• Card Factory Plc
• Marstons Plc
• Oxford Instruments Plc