A successful Credit Control Department will have well defined credit management policies and procedures to guide them.

Once the basic credit philosophy has been decided, the main credit policies can be determined. These policies will generally be concerned with the following:

• Opening new accounts.
• Establishing Credit Limits.
• Methods of lowering risk and increasing credit limits.
• Maintaining credit on existing accounts.

In addition to the basic credit policies, your department must also decide on personnel issues, to include:

• Staffing requirements, responsibility and duties.
• Chain of command and lines of authority.
• Sales & Operations responsibility with credit issues.

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