A study of credit management practices adopted by small businesses: Evidence from OM Engineering Works, Pune.

This study finds that OM Engineering Works has problems with managing credit because of informal methods, not checking if customers can pay, and more accounts receivable that are past due. Internal rules within a company are the main reason why sales and money owed to the company change the way they do. Recommendations suggest creating a clear credit policy, checking customers' creditworthiness, applying consequences for delayed payments, and using digital tools to track outstanding payments. By taking these steps, small businesses can boost their cash flow, reduce the chance of bad debt, and make their finances healthier. Keywords: Credit Policy, Receivables Management, Financial Stability, Small Business Finance.

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