Are your customer credit applications good enough?

Download

A lawyer’s checklist.

With inflation and interest rates on the rise some of your customers may be looking for ways to manage a liquidity squeeze. Unfortunately, those customers may see their trade suppliers as an “alter- native financier” and may either extend your trading terms or indefinitely delay payment to ease their own cash flow pressure.

Credit managers will be familiar with strategies to minimise credit risk. These include:

  • Make sure your customer credit application and terms of trade are clear
  • Use credit checking to screen new customers
  • Case manage customers whose credit terms have blown out
  • Move quickly to recover overdue debts
Customer credit application review

Why is your customer credit application important?
The simple answer is that it is the contractual document that establishes your legal relationship with customers.

To read the full article in PDF click “Download” button in the header.

Published in: AICM Magazine, Credit Management In Australia, May 2012

Other recent white papers

Checklist: What to do when your business is insolvent

In our guide, we set out 7 steps that a financially troubled business should undertake to respond to insolvency. We find that catching financial distress earlier in the client journey will increase their chance of turnaround or at least to minimise the cost.

One objective of this checklist is to help company directors and owners to work out whether they need professional help and to work out their end game of either business continuity or business exit.

read more