Do you have a written credit policy to help you with Accounts Receivable Management? Many companies don’t. Some companies do not have a written policy because they feel it will be more trouble than it is worth in terms of keeping it up to date and feel that the policy will quickly be forgotten and not used- so why bother?
Yes, there is some time that needs to be spent with the document to ensure it is up to date and accurate and you need to make sure your credit professionals are utilizing the document. It may seem like a hassle at first but that is time and energy well spent when you consider the advantages of having a formal written policy in place. But write with care, there are some very important guidelines for writing an effective credit policy to ensure more effective Accounts Receivable Management. Continue reading