Credit Overview

Credit Overview

To help minimise their exposure to potential credit losses, businesses should have clear credit management policies in place.

Credit Overview

Credit Policy Management

Much of the focus in terms of business cashflow is on getting paid by customers and dealing with late payments or non-payment. To help minimise their exposure to potential credit losses, businesses should have clear credit management policies in place, with the necessary systems and documentation, and put them into practice.

A good credit management policy has six foundations:

  • Knowing your customer
  • Clear payment terms and credit limits
  • Invoicing for payment
  • Working capital finance
  • Addressing non-payment and bad debts
  • Treating customers fairly

For more information on managing your credit policy, please visit the Managing Credit Policy section here.

Working Capital Finance

Working capital finance options include overdrafts and invoice discounting. Some lenders also provide financing options that enable businesses to spread major payments over a longer period.

For more information on working capital finance options, please click here.

Financing International Trade

There are a range of trade financing and payment options available to businesses. For more information, please visit the International Business section here.