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

When I ran my collection agency I would get clients who would place an account with me but did not have any documentation.  For example, a credit application, a contract or agreement, a purchase order or copy of the order, or a proof of delivery.

Having documentation for your sales is extremely important. Not only does it give you a paper trail it gives you the tools you need to make sure you get paid.

Proper documents allow a collector to have the information needed to effectively collect on an account or pursue it legally.  If you have a credit application for each customer, that should be enough.  It should include name, physical and mailing addresses, work information, phone numbers, social security number, references, vendors, bank information and permission to check their credit as well as what your payment terms are.