Credit Control Strategy and Policy
Why have a Credit
Control Strategy and Policy?
A credit control strategy and policy is the tool by which you set the culture for the financial aspects of your business.
You get to weigh up the consequences of different options and to thereby decide the process used to ensure payment from your customers. This meets yout business cash flow needs whilst protecting the relationship with your customers.
By putting this into a document and circulated it to everyone in the business involved in credit control (directly and indirectly), you make it clear to everyone what needs to be done, when, and their individual responsibilities.
Items to include be included in a credit control policy document are:
- The Policy statement – the overall aims the Policy intends to achieve.
- Credit checks and limits – what to do when limits are reached abd new customers are set up.
- Operations – invoicing, statements and timeframe.
- Collection process – phone calls, letters and timeframes.
- Query Management Process – deadlines for resolving queries, authority levels for credit approval.
Hopefully, this gives you an idea of the scope and thereby benefit to be gained from implementing a Policy. Our last piece of advice is that once you have a Policy, remember to review it on a at least annually as what applies now might not valid next year.
Urecall Ltd can help develop and implement a new Policy, or to review an existing Policy.
For more information about how we can help you call Geoff on: 01978 800390 or email info@urecall.co.uk
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