Look at our tutorial and credit management policy template to create and implement in your company key principles of credit management.This document will define all the practicices and rules to manage efficiently accounts receivable. It has to be shared and validated by all stakeholders who are not only finance team but also controlling, sales, customer care.
It covers following subjects:
- Account creation
- Credit limit and payment term setup
- Debt collection
- Dispute management
- Bad debts and write off
- Management of credit insurance, tools to use to mitigate credit risk.
- ...etc.
Implementing and applying such policy is key to reach good performances in accounts receivable management as it defines internal credit rules of the company and organize the communication and responsibilities between credit team and other departments (sales management, customer care...).This procedure has to be very close to the operations done every day by the company's employees. It avoids internal misunderstanding and help to be stronger in commercial negotiations.
See more