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:
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.