Accounting Best Practices, Fifth Edition

Credit Issues

7–26	Create a credit policy
7–27	Modify the credit policy based on product margins
7–28	Modify the credit policy based on changing economic conditions
7–29	Modify the credit policy based on potential product obsolescence
7–30	Preapprove customer credit
7–31	Create standardized credit level determination system
7–32	Require a new credit application if customers have not ordered in some time
7–33	Review the credit levels of all customers who stop taking cash discounts
7–34	Call new customers and explain credit terms
7–35	Verify customer locations from reverse phone records and satellite photos
7–36	Issue a payment procedure to customers
7–37	Join an industry credit group
7–38	Refer a potential customer to a distributor
7–39	Require intercorporate guarantees
7–40	Obtain credit insurance
7–41	Shorten the terms of sale