Credit Control Policy
Credit Control
Contents Why should you have an effective credit control policy? What should your credit policy contain? How can you assess what a customer is worth? Why should your customer’s identity be important? Limited liability partnerships. Confusion over trading names Business Names Act 1985 How do you assess your customer’s credit risk? Why should data protection be important? Who is protected by the Data Protection Act? How does the Act apply? How should you get consent? Grey areas How will Data Protection issues present themselves? Why should you have a written contract? How can you implement your credit terms with a new business? The Battle of the Forms - whose terms and conditions apply? What should your Terms and Conditions of Sale contain? Why is your sales ledger important? Customer file Invoices Statements of Account Credit Limits Disputes. Overview of credit policy Why should you take up bank and trade references? Trade References Bank references Prevention is better than cure: How to secure payment from third parties Third party guarantees When should you seek a third party guarantee?
Practical advantages of third party guarantees Personal Guarantees Parent company guarantees Directors Guarantee Guarantees in General Calling up the guarantee Retention of title How to collect outstanding accounts • Invoice: • Statement of Account • First Reminder Letter • First Telephone Call • Consideration whether customer should be put on “stop” • Final telephone • Final Reminder Letter • Whether to pass account to a collection agency or to solicitors Some practical advice • Collect accounts logically • Ensure resolution of all disputes How should you deal with post dated cheques What should you do if your customer’s cheque bounces? • Cheque returned “referred to drawer” : • “Referred to drawer” – “please represent” • Post dated cheques: • “No account held” – (or account closed) • “Countermanded” or “Stopped”: • Cheque out of date: • Cheque is unsigned: •
Contents Why should you have an effective credit control policy? What should your credit policy contain? How can you assess what a customer is worth? Why should your customer’s identity be important? Limited liability partnerships. Confusion over trading names Business Names Act 1985 How do you assess your customer’s credit risk? Why should data protection be important? Who is protected by the Data Protection Act? How does the Act apply? How should you get consent? Grey areas How will Data Protection issues present themselves? Why should you have a written contract? How can you implement your credit terms with a new business? The Battle of the Forms - whose terms and conditions apply? What should your Terms and Conditions of Sale contain? Why is your sales ledger important? Customer file Invoices Statements of Account Credit Limits Disputes. Overview of credit policy Why should you take up bank and trade references? Trade References Bank references Prevention is better than cure: How to secure payment from third parties Third party guarantees When should you seek a third party guarantee?
Practical advantages of third party guarantees Personal Guarantees Parent company guarantees Directors Guarantee Guarantees in General Calling up the guarantee Retention of title How to collect outstanding accounts • Invoice: • Statement of Account • First Reminder Letter • First Telephone Call • Consideration whether customer should be put on “stop” • Final telephone • Final Reminder Letter • Whether to pass account to a collection agency or to solicitors Some practical advice • Collect accounts logically • Ensure resolution of all disputes How should you deal with post dated cheques What should you do if your customer’s cheque bounces? • Cheque returned “referred to drawer” : • “Referred to drawer” – “please represent” • Post dated cheques: • “No account held” – (or account closed) • “Countermanded” or “Stopped”: • Cheque out of date: • Cheque is unsigned: •