A successful debt collection process begins with an effective credit policy.
We know that googling “General Terms and Conditions” is very convenient, however it is not a good solution to protect you against unpaid customers.
At TY Lawyers we love helping businesses grow. Our team will examine your credit policies and trade agreements for effectiveness and provide our findings compiled in a report, with recommendations.
Simply upload your company credit policy and trade agreement and we will review it for you.
The health check is absolutely free!
What is a credit policy?
A credit policy is a set of guidelines that should be clear and outline the following:
Which customers are extended credit and billed
Credit limits and payment terms
Limits set on outstanding balances
How outstanding accounts are dealt with
These agreements are generally between commercial entities, of which the customer typically wants to be billed for a delivered product or service.
Why is a credit policy important?
Having an internal credit policy in place for your business can be very important, especially for small businesses. A credit policy helps your business to maximise and maintain cashflow, whilst reducing the amount of bad debts and possibility of write-offs.
Your credit policy should clearly specify your credit terms and conditions, along with payment dates and the parties who are entering into the credit contract.
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