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Credit Management refers to the strategic practices and processes implemented by businesses to effectively manage their credit risk, extend credit responsibly, collect outstanding debts, and maintain healthy relationships with customers and lenders. It involves monitoring and evaluating the creditworthiness of borrowers, setting appropriate credit limits, and ensuring timely repayment. A robust Credit Management system contributes significantly to a company's financial stability and success by promoting prudent borrowing, minimizing losses from bad debts, and enhancing cash flow management.