The Difference between Credit Policy, Procedure and Rule

Overview:

We will break down in detail what is needed to make a strong credit policy, followed by consistent procedures and when rules are needed and why. We will start with how a company will do credit investigations, who will do them and when. We will go on with when accounts should be put on hold, when they should be called and when they should be sent to collections. It will also go over who should be doing each of the functions keeping in mind segregation of duties. It will cover credit limits and who has authority to sign off at each dollar level.

Why you should Attend:

Most large companies that have credit departments have policies, procedures and rules set up for them to function properly. However, each one has a different impact on the decisions made in the credit department. In this webinar we will break down each of these and show the benefit they have in establishing a strong credit department. It will go over step by step how to set up each of these as well as everything that is needed for a credit department to be successful by following these. Without having these in place the credit department would be very dysfunctional as the following issues would exist:  the collectors would not be consistent in what they are telling their customers, the write offs would be all over the board, when to turn accounts over to collections would have no structure and much more. By attending you will learn the importance of implementing all three aspects for your credit team.

Areas Covered in the Session:

• Definition of Credit Policy, Procedure and Rule
• Credit department objectives 
• How to establish a credit policy
• Focal points of credit policy
• Other influences of credit policy
• Should policy be implied or written
• Check list for credit policy
• Implementing credit policy
• Conditions that can cause credit policy to change

Who Will Benefit:

• Anyone Working in a Credit Management
• Controllers