Cash or Credit?

As credit gets tighter more and more businesses are tempted not to offer this facility. They will be requesting payment for goods and services up front.

Every business which is owed money at the moment are hearing the same story “I can’t pay you until I get paid” this vicious circle is crippling most businesses and we know firsthand from our clients and customers that it is now a major problem for everyone.

It is not a simple choice, if you are starting up in business and are looking to attract new customers, demanding cash up front will make it more difficult, in some sectors, to convert sales.

Why is it important to write a credit policy?

A credit policy is vital to the overall management of the credit function, What should this say and how should this be used?

What is a credit policy?

A Credit Policy is simply a document that sets out the rules around the granting and management of credit in your business.
It should be:
• simple and readable and communicated to everyone in the business
• prepared by the Credit Manager or person in charge of the day to day running of the credit function
• Signed off by the board of Directors

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