Are your customer credit applications good enough? A lawyer’s checklist

Download

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

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