Credit Policy ArticlesRSS feed for this section

A credit policy is a set of guidelines that: (1) are used to determine which customers are extended credit and billed; (2) set the payment terms for parties to whom credit is extended; (3) define the limits to be set on outstanding credit accounts; and (4) outline the steps or procedures used to deal with delinquent accounts. When it’s broken down into its component parts, a credit policy seems to be an encapsulation of how risk averse a company is vis-a-vis extensions of credit and other monetary policies with respect to accounts receivable. For most businesses, especially those in the construction industry, a sound credit policy should be an integral part of the company’s business plan, monetary policy, and overall risk-management strategy.

10 Things to Consider When Writing A Credit Policy

Credit Policy Information and Tips

Credit policies are critical documents for nearly every organization, but especially for those B2B businesses who manage trade credit. Nearly every construction industry business is in this position, as construction materials, labor, and services are typically furnished and…

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How A/R and a Lien Policy Work Together

Lien Policy

A thorough Lien Policy can form the backbone of a strategic A/R collection plan. Implementing a lien policy can reinvent a company’s receivables, which leads to less bad debt and fewer write-offs.

Getting Paid in the Construction Industry Is Tough

Getting Paid in…

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