Commercial Collections Blog

Profitably Manage Receivables with a Credit Policy

The best way to avoid having to work in a reactive mode in the future is to build a sound, proactive credit policy now.

To realize all the benefits of a formalized credit policy, nine areas need to bey addressed.

The  sections of a sound credit policy are:

1. Mission Statement

2. Goals


3. Define Credit Limit Authority


4. Credit Evaluation


5. Credit Limits

6. Terms


7. Account Monitoring

8. Credit Hold

9. Collections