Credit Management policy
|What is a credit management policy?
This is an operational document defining a number of operating rules for the sales process that must be followed by the entire company including of course the credit team.
It defines the standard conditions of sale (standard payment terms, early payment discount rate... etc.) and the processes to apply the rules (how to open an account, how to set a credit limit, how to recover the bills ...etc.).
These rules are intended to do "good" sales and to converge business strategy, commercial stakes and financial issues (credit risk, cash, profitability, working capital improvement).
Why implement a credit management policy?The establishment of a procedure for credit management is necessary and critical in business since the number of employees exceeds ten and unwritten rules that are no longer appropriate. It defines the rules of operation at each stage of the sales process and clarifies the responsibilities in line with the business strategy.
The policy of credit management clarifies the objectives of the company and set best practices that must be followed by the entire organization.
|I have found the credit management NOTES very helpful and I think these have aroused interest in taking a course credit management course. I recommend others to read this website|
|please confirm if all tools available in english language.
Yes, all tools are available in english
|From :||Darshan Pansare|
|Very insightful article. Showing that credit management is everyone's responsibility in the organisation; not just the credit manager's.|
|From :||Lebogang Mogotlhwane|
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