Secure your ability to collect money that is due your company with a sound credit policy.
The purpose of a credit policy is to ensure timely payment from existing and new customers sold on an open account. A credit policy defines which customers will be offered “terms” of payment, the specific “terms”, and the limit of available credit, billing procedures, and methods to handle receivables.
Having A Good Credit Policy Is The First Step
It is well known that there is a relationship between accounts receivable and the extension of credit. Maintaining equilibrium between accounts receivable and credit terms is often challenging. Offering generous terms to unworthy customers may result in increased accounts receivable, negatively impacting your bottom line.
Offering too little credit to worthy customers may result in fewer sales and reduced income. Achieving the right balance between credit and collections is tricky, but can be accomplished by establishing a sound credit policy.
A credit policy defines which customers will be offered “terms” of payment, the specific “terms”, and the limit of available credit, billing procedures, and methods to handle receivables. The purpose of the policy is to ensure timely payment from existing and new customers sold on an open account.
Credit Policy Review
We are available to review your current policies and help you to create sound credit policies that will keep your cash flow healthy and your client relationships on good terms.
For questions on establishing or modifying a credit policy, credit manual or credit documents for your business, contact us by email or call (212) 686-0100.
We are available to conduct professional collections workshops on Updating Your Credit Policies to Increase Business, Protect Your Bottom Line: Effective Strategies for Getting Paid, The Importance of Credit Policies in Reducing the Cost of Bad Debt and more.
Video on Debt Prevention:
For scheduling a workshop for your business or professional association, contact us by email or call (212) 686-0100.