This policy is an excellent example of a policy which has some detail - enough to be helpful - but not an overwhelming amount. This gives it flexibility and some element of timelessness.
Included:
- Purpose
- Scope (including 15 areas either in, or related-to receivables)
- Policy
- Procedures - including a credit approval matrix, customer master record details, methods for handling customers over credit limits, payment terms, collections
Innovative highlight: It includes a handy routing list/checklist for approval of the document from key top management positions, as well as an easy and prominent "date last revised" section.
Industry: Health & beauty lotions, competitive, strong margins
Length: 5 pages
As always with a document such as this, this should serve as a great source of ideas - at the very least a starting point from which to build or improve your own policy.
