The best way to avoid having to work in a reactive mode in the future is to build a sound, proactive credit policy now.
To realize all the benefits of a formalized credit policy, nine areas need to bey addressed.
The sections of a sound credit policy are:
1. Mission Statement
2. Goals
3. Define Credit Limit Authority
4. Credit Evaluation
5. Credit Limits
6. Terms
7. Account Monitoring
8. Credit Hold
9. Collections
