Mister Line Editor
Mister Line Editor
  • Editing Proofreading Services and Prices
  • Editor and Proofreader
  • About Me
  • Blog
  • Children's Books
  • Customer Reviews
  • Contact Me
  • Editing Proofreading Services and Prices
  • Editor and Proofreader
  • About Me
  • Blog
  • Children's Books
  • Customer Reviews
  • Contact Me

Four Steps to Writing a Credit Policy Manual

7/6/2018

0 Comments

 
Keela Helstrom reports:

"A credit policy is a must for all businesses that provide [their] customers with services and merchandise on credit. A good policy outlines the procedures for evaluating a customer's creditworthiness, for extending credit to customers that are most likely to pay their bills on time and for establishing purchasing limits based on a customer's credit history and ability to pay. When adhered to by all employees, a credit policy helps minimize a company's risk of not receiving the cash from a sale made on credit...Explain the purpose of the credit policy at the beginning of the manual. State the overall responsibilities of the credit department, including the duty to assess customer creditworthiness and minimize the potential loss resulting from extending credit to customers. Include the duties, responsibilities and authority of each member of the credit department and give employee names and contact information...Include the payment credit terms the company will extend to its customers -- the number of days from the invoice date until the cash payment is due. Express the credit terms as a number. For example, if a company's credit terms are net 30 and a customer's invoice has a date of Nov. 30, the total invoice amount is due Dec. 30 of the same year...Outline the company's credit application and approval procedure. Clearly state how customers are to apply for credit and the documents and references they should provide with the application. Indicate the employees responsible for reviewing customer applications and the process used for evaluating a customer's creditworthiness and specific credit limits...Specify the corporation's procedures to collect on its outstanding customer invoices. Clearly state the specific collection action that is taken in relation to how many days a customer's invoice is past due. For example, a company may choose to mail a delinquent letter to a customer with an invoice 15 days past the due date but make a courtesy call to a customer with an invoice that's 30 days past due. For more delinquent accounts, a late payment arrangement may be established, a collection agency may be employed to collect the debt or legal action may be taken."
0 Comments



Leave a Reply.


    Writing and editing can be pretty rigorous processes if you want to do them well, but that's what this page is here for. Check out the latest tips here.

    Archives

    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015

    Categories

    All

    RSS Feed

    Picture
    J.D. Parsons
    Author
    SEO Writer
    Proofreader
    Editor
    Internet Researcher
Proudly powered by Weebly