Sample Credit Policies and Procedures Manual. Sample Credit Policies and Processes Manual. Of this Credit Policies and Procedures Manual is to create a set.

• Create A Policy Manual

A credit policy is a must for all businesses that provide its 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. 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.

Create A Policy Manual

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.