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

Many businesses have a credit policy, most of them have the original credit policy that might have been written 10 or more years ago or when the business was started.  Make it a priority to look at your credit policy and make sure it reflects how you want to be paid and how you want to be paid. 

Some things to look for are what your criteria is for a certain line of credit, should that be re-evaluated?  If you were ever going to be stingy, now is the time.  Maybe you want someone to meet certain qualifications in order to get a $500 credit limit, or a different set of criteria for a $1,000 credit limit.

When sales are slow people take the sale without checking credit because they are so happy to make a sale.  That is all well and good but remember, a sale isn't a sale until you get paid.