by
Rameez Karim , Finance And Accounts Manager , Goldenspoon Group
1Identify what credit is normal for your industry, and decide what credit period - if any - you need to offer customers to be competitive.
2Consider ways of minimising credit risk such as offering discounts for payment with order, factoring your invoices, or accepting credit cards.
3Draw up a clear statement of your payment terms, and bring it to the attention of any customer applying for credit; include it on all order forms, invoices and other financial documentation.
4Terms should reserve your right to charge interest for late payments under the Late Payment of Commercial Debts (Interest) Act.
5Use a credit application form to collect customer details, including a named contact, bank account, and trade references.
