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

Setting payment terms, due dates and establishing penalties for late payments is crucial to your business success.  You will be paid based on how & when you say you want to be paid. 

You need to decide what you want to offer for payment terms. 

• How often do you want to get paid?
• Do you want to offer 30 day terms?
• Do you want to offer a discount if someone pays you in 10 days?
  

No matter what you decide for terms, you also need to choose a time of the month that you want to be paid.  For example, the first of every month, the 15th, or maybe the end of the month.