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Credit and Collections checklist
Credit Policy Review
Verify that the credit policy is up to date with current regulations and business objectives
Ensure all staff members are aware of and trained on the credit policy
Review the credit policy for potential improvements based on recent credit and collections experiences
Credit Application Process
Review the credit application form for completeness and legal compliance
Ensure that the credit application process includes a thorough check of references and credit history
Confirm that all new credit applications are approved by a designated authority before extending credit
Account Monitoring and Risk Assessment
Regularly review aging reports to monitor outstanding receivables
Assess the credit risk of each customer periodically and adjust credit limits accordingly
Implement a system for early detection of potential non-payment issues
Collections Strategy
Develop a tiered collection strategy based on the age and amount of outstanding receivables
Create template letters and scripts for collections communications to ensure consistency
Schedule regular follow-ups for overdue accounts and document all communications
Legal and Compliance
Ensure collections practices comply with all applicable laws and regulations
Keep records of all collections activities to provide evidence of compliance if required
Stay informed about changes in collections laws and update practices as necessary
Customer Communication
Maintain open lines of communication with customers regarding their accounts
Train staff on customer service excellence to preserve customer relationships during collections
Provide customers with clear information on payment options and consequences of non-payment
