Checklist to have Credit Control

Remember that if you don’t get paid at all then you have in fact made a gift to that customer and what was at first a good sale has become a bad debt.

  • RULE 1: Don’t give credit to any customers unless you can avoid it and unless you feel that by giving credit this will ensure the sale

  • RULE 2: Sit down and set out your policy on granting credit and ensure that you stick to it e.g. Set a limit on the amount of credit available to certain customers and point out that interest will be charged on overdue accounts etc.

  • RULE 3: Always make sure that you check out thoroughly each customer before credit is advanced and this can be done by referral to credit agencies, other people that the customer has obtained credit from, finance organisations etc.

  • RULE 4: It is a good policy to allocate this function of credit control to a responsible manager who has the experience and the tact to handle this.

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