Search results
Below are sample guidelines to help you build out your company’s collections process. Timelines and collections strategies can be customized to reflect different levels of risk with respect to both your company and your customers. 1. When to Contact Customers. 2. How to Handle Disputes.
27 kwi 2024 · Credit policies and procedures contain the steps on what actions you should take when you or your employees would encounter credit-related problems, such as the failure of customers to pay on the set due date.
A company’s credit policy can vary in length, from a couple of pages to hundreds of pages. Below is an example of a sample business credit policy that can be adapted to fit the needs of any company.
A solid Credit and Accounts Receivable policy can help you do an effective job up‐front in managing how and when credit is extended and how and when to follow up on past due accounts.
The policy aims to provide credit and collections in a nondiscriminatory manner while maximizing profitability. Key aspects include: obtaining necessary information for new accounts and orders; setting credit limits and payment terms; conducting credit analyses; and maintaining credit and collection files.
The document emphasizes that a well-planned policy can help businesses more effectively manage accounts receivable and cash flow. This document provides an overview and summary of key aspects of developing an effective credit and collection policy.
This guide is for credit, collections, and other finance professionals to assist in developing more effective strategies to collect accounts receivable. It will help you answer these questions in creating your own policy: • What is the purpose of the collections policy? • What are the goals of the collections department?
