I. Credit Policy and Procedures


A well-defined credit policy allows a business to achieve established goals and serves as a guide in determining how to handle a variety of situations. In the decision-making process, credit policy is interpreted and applied to actual situations with guidelines or procedures that are devised by credit professionals to standardize the requirements assigned to the department. Companies can publish procedure manuals as ready references for employees.

After viewing this module, students should understand: 

Module Outline: 

  • The purpose of a credit policy.
  • The advantages of a written credit policy.
  • How a credit policy is developed.
  • The components of a credit policy. 
  • How to create an effective credit department.
  • Establishing terms of sales and credit limits
  • How to handle collections and bad depts.
  • Types of credit procedures needed.

1. Defining Credit Policy
     a. Written vs. Implied Policy
     b. Importance of Credit Policy
     c. Developing a Credit Policy
     d. Credit Department Mission Statement
     e. Goals and Objectives of a Credit Department
2. Credit Procedures


Speaker Bio:
Toni Drake brings over 30 years of oil and gas credit experience to the table. Toni holds a CCE, NACM’s most prestigious designation. After earning her CCE, she went on to attend and excel at NACM’s Graduate School of Credit and Financial Management to further her education in the field of credit. Toni continues to support the credit profession as a speaker and instructor at events like NACM’s annual Credit Congress.


Open to view video.
Open to view video.
Quiz Attempt 1
10 Questions
10 Questions This is your first of 2 quiz attempts. If you pass, you can proceed to earn your credit. If you fail, you can proceed to Quiz Attempt 2.
Quiz Attempt 2
10 Questions
10 Questions This is your last quiz attempt. If you pass, you can proceed to earn your credit. If you fail, please contact education_info@nacm.org.
0.10 CEU credits  |  Certificate available
0.10 CEU credits  |  Certificate available