Learn more about marketingandsales with this collection
How to prioritize tasks effectively
How to manage your time efficiently
How to reduce stress and anxiety
Savvy credit management
Every credit policy tells you what your company will do if a customer doesn't make a payment on time. It also tells you what process you have for doing that. You have to have a credit policy because it affects your cash flow and the risk of loss if customers do not pay.
7
128 reads
MORE IDEAS ON THIS
Credit terms should be set by the supplier
Credit terms should be set by the supplier in agreement with the customer, because there are many limitations involved when a buying organization decides to set their own credit policies.
8
84 reads
Late Payments.
Getting paid within 30 days of invoice date is the goal as defined in most small business cash flow management systems. Late payments can have a series of negative effects. For example, late payments may increase the risk of bankruptcy or insolvency, which normally lead to a loss of a contract an...
7
71 reads
Check the credit rating of your customers
Please check the credit rating of your customers before you extend them credit. If you don't, you'll be in for some nasty surprises. Your customers will be in the habit of not paying their bills on time and if you don't find this out on time you're going to have wasted a lot of money.
8
87 reads
A credit application form/agreement
This is a credit sales agreement and should include the terms and conditions of credit sales between a creditor and a customer. This document, once signed by both parties, sets out the agreed credit terms in accordance with the law and may also be referred to as a 'credit sales agreement.'
6
80 reads
Factors that affect business credit terms:
- The type of customer,
- The size and financial strength of the buyer,
- The supplier's operating cycle,
- Seasonality,
- Payment history,
- Supplier's profit margin
7
75 reads
Have someone dedicated to tracking debtors
The person's job is to make sure invoices are sent on time and follow through on aligning your credit management strategy with every customer interaction. You need someone responsible for making sure the money is paid to your business.
8
82 reads
Establish credit limits
Having credit limits in place will fundamentally help your business in two ways.
- It establishes clear rules for you and for your customer
- Credit limits work as a protection for you and your business.
7
109 reads
CURATED FROM
IDEAS CURATED BY
Credit management is my biggest lesson for the past 24 months. I personally lost $6, 000 to a client in Malta because of a lack of good business credit management on my part. I don't want you to make the same mistake.
“
Related collections
Other curated ideas on this topic:
1. Know your credit risks
You can check your credit report for free once a year from each of the three main credit reporting agencies, TransUnion, Equifax and Experian. But your score won't be included on these free reports — you'll usually have to pay to see it.
If you do purchase your score, it usually comes with ...
Credit Card's Danger
Credit card usage can lead to debt and the debt grows itself while unpaid. However, used responsibly, it's a good way to start building credit.
Most credit cards also have other benefits, such as rewards points, cash back, or travel points. But if you're incapable of payin...
Credit/debit cards
Credit or debit cards are convenient, but you don't see your shrinking bank balance with every purchase.
If you use mobile banking or money management apps while using your card, and it’s working, keep doing your thing. Otherwise, you might want to consider...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates