An Introduction To Business Credit Policies
It’s normal for potential customers to inquire about credit options when purchasing. After all, credit is one of the most popular modes of payment. It’s easy and convenient, and allows consumers to buy pricey items in the absence of cash. And best of all, payment can be made over a period of time.
The only drawback is people tend to spend more when using credit. And oftentimes, they pay late, which represents losses for businesses. This is why there is such a thing as a credit policy.
A credit policy balances out this system. It allows consumers to buy things they otherwise would not afford at the moment, while making sure the credit granted is within the consumers’ ability to pay. This is why companies have strict standards when it comes to credit standing, and meticulous processes in identifying people who have good credit health.
A good credit policy is also fair with its limit on credit, and clear with the terms and conditions, which buyers need to follow. And speaking of terms and conditions, everything in a good credit policy that needs to be documented should be documented, from credit applications all the way to purchase orders and receipts. This allows for a clean discussion should legal disputes arise.
Receivables Performance Management have always been given glowing reviews by its clients, and for good reason. The company has always held its core values of respect and compliance, character, and integrity as its priority in every transaction. Learn more about the company here.
The only drawback is people tend to spend more when using credit. And oftentimes, they pay late, which represents losses for businesses. This is why there is such a thing as a credit policy.
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Image source: expertbusinessadvice.com
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A credit policy balances out this system. It allows consumers to buy things they otherwise would not afford at the moment, while making sure the credit granted is within the consumers’ ability to pay. This is why companies have strict standards when it comes to credit standing, and meticulous processes in identifying people who have good credit health.
A good credit policy is also fair with its limit on credit, and clear with the terms and conditions, which buyers need to follow. And speaking of terms and conditions, everything in a good credit policy that needs to be documented should be documented, from credit applications all the way to purchase orders and receipts. This allows for a clean discussion should legal disputes arise.
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Image source: entrepreneur.com
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