A robust credit policy should be put into writing, and clearly spell out:
- Credit limits tailored to each customer’s risk profile and financial health.
- Payment terms, including due dates and incentives (e.g. early-pay discounts or penalties for late payment).
- Consequences for missed payments—such as stopping future orders, applying interest, or going to collections.
What if the policy is vague or missing?
Ambiguous or absent policies lead to these all-too-common pitfalls:
- Clients use inconsistent standards to push back payment, blaming unclear terms.
- Internal teams show favoritism—leading to inconsistent standards and confusion.
- Businesses can’t take swift action on overdue accounts when consequences are not documented.
Overwhelmed by the number of debt collection companies?
Let us make the choice easy for you!
RSD is different from other debt collection companies because we offer consultation services to design, refine, and implement your credit policy. Of course, if you’re ready for a third party to step in with a delinquent account, RSD is always on call for you!
Contact our friendly experts at (248) 370-8160 or by submitting a contact form.