Checklist on How To Control Credit

Here are some points to consider when looking at a credit policy.

  • Make sure your terms of trade are clear.

  • Ask the customer to sign acknowledgement of the terms.

  • Make sure you get full credit reports on all applicants.

  • Find out about, and know who your customers are.

  • Make sure the terms include late payment fees for accounts that are not settled on time.

  • Make sure that the invoice clearly states the terms, as well as full details of the transaction.

  • List full details of the customer so they can be contacted when the debt becomes due.

  • Make sure you have a good accounting and credit control system in place.

  • Have standard letters sent out immediately once payment is due.

  • Have procedures in place to be undertaken when a payment is overdue – this may involve calling the customer personally or sending a serious demand. It could even involve a legal letter from your lawyer or debt collector.

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