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

Do this TODAY! It is imperative that you protect your business during this credit crisis!

• Print out credit applications and put them at your front desk or by your front door.
• Have every new customer fill one out and sign it.
• Check their credit.
• Decide if they are credit worthy by calling their references. (Take notes!)

 What to do TOMORROW

• Make sure EVERY customer in your database has a signed credit application on file.

• Mail a credit application to any customer that doesn’t have one.

•  Mail a credit application to any customer that hasn’t filled one out in the last year.

 What to do a WEEK later

• Make a note on each account that did not return an updated credit application and revoke their credit until they send or give you the signed application.

Do NOT extend credit to ANYONE who does not fill out an application.