Credit Policy for businesses and how to extend credit and manage credit risk

Every business has different types of accounts and customers but many extend credit so it only makes sense that no two credit policies are the same.

Your credit policy will be much more effective if you customize it to fit or suit your business than using a "canned" policy from another company.

Customizing your policy can be as easy as using a basic policy and seeing what special circumstances or needs your customers or business needs. Then you can incorporate those situations into your policy to make it more effective with future situations that can arise.

 Remember that for your credit policy to be effective it should use multiple facets to cater to prospective customers but also protect you, the business owner.