Approximately 1/3 of all organizations have no written credit policy, including a quarter of those with revenue between $100 million and $1 billion.
Atlanta, GA, March 22, 2016 (Newswire.com) - Receivable Savvy today published its free Best Practice Insight: How to Create a Credit Policy for Your Organization, an end-to-end, 25-page guide developed to help organizations create a comprehensive written credit policy.
A written credit policy is a key component of any organization hoping to expand sales, gain market share and, most importantly, protect receivables. This guide outlines the process and explains how any organization can create and implement a credit policy to ensure timely payment while simultaneously expanding and maintaining good customer relationships.
This eBook will help organizations:
- Determine the elements needed for establishing a credit policy mission
- Understand the importance of setting policy goals
- Appreciate how a written credit policy helps grow market share
- Determine which receivables measurement is right for their company
- Identify who should have responsibility in credit evaluation.
“Our 2015 Perceptions Study indicated that about 1/3 of all respondents do not have a written credit policy,” said Ernie Martin, Founder and Managing Director of Receivable Savvy. “Furthermore, approximately one quarter of organizations with revenue between $100 million and $1 billion have no written policy. This guide is designed to help those organizations understand what a written policy entails, how to implement one and how it can positively influence working capital."
How to Create a Credit Policy for Your Organization is the second in a series of free Order-to-Cash Best Practice eBooks Receivable Savvy will publish this year. The first eBook, How to Reduce DSO for Your Organization, was published in February.
The free eBook can be downloaded by going here: Create a Written Credit Policy
About Receivable Savvy
Receivable Savvy helps supplier organizations master the complex Order-to-Cash process and maximize revenue through proprietary research, best practice content and insight from subject matter experts.
Founded in 2015, Receivable Savvy desires to cultivate knowledge and understanding among suppliers while also delving into their habits and practices. Comprised of industry veterans, Receivable Savvy strives to be the primary source of financial supply chain information for Accounts Receivable professionals focused on key elements of the Order-to-Cash process.
We help our members understand issues around customer master data, order management, credit management, invoicing, accounts receivable, payment, collections management, cash application, compliance and internal controls.