Credit Policies + Small Business CFO · the skool CLASSIFIEDS

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Credit Policies + Small Business CFO

You wouldn't loan a stranger money without knowing anything about them. But that's exactly what most business owners do when they extend credit without a policy.

A solid credit policy covers:

1. Who qualifies for credit and who doesn't.

2. What information you collect before extending terms.

3. How much credit any single customer can carry at one time

4. What your standard payment terms are and when exceptions are allowed.

5. What happens when a customer doesn't pay on time.

Without a written policy every decision is made on gut feel. That inconsistency costs you cash and creates problems that are hard to unwind.

Your credit policy is the foundation the entire collections process is built on. Get this right first and everything downstream gets easier.

Maybe you're reading this here in Skool and thinking this doesn't apply to me....yet. Better to get ahead of things like this so as you grow, scale, etc. you are not caught off guard.

👇 Do you have a written credit policy right now? Drop your answer in the comments and share with a friend!

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Credit Policies + Small Business CFO