How To Design Credit Policies
Source: American Express
When designing your company's credit policies, focus on supporting your company's goals. Most likely, you'll want to increase sales, market share, and profits. First, figure out the route you'll take on the road to higher sales, greater market share, and increased profitability. Next, describe new policies or updates to existing policies that can help achieve these goals. Expand your payment options: accept charge cards in addition to cash. Start offering credit lines to customers if you haven't extended credit before. Or, if you've provided credit terms for years, increase credit lines for promptly paying customers.