What is a Credit Management Policy?
Credit management policies (CMP) are guidelines and rules defined by management which governs the credit department of company’s and its concert in the addition of credit rights.
Credit management policy defines a number of operating rules that must be followed by the entire company including of course the credit team. It majorly addresses below conditions
Credit policy (1): The terms and conditions for supplying goods or services on credit,
Credit policy (2): Procedures for making collections
Credit policy (3): Customer eligibility criteria,
Credit policy (4): Steps to be taken in case of customer/vendor delinquency.

What we Offer Under Credit Management Policy
• Evaluate and define the standard conditions for sale (payment policy terms, early payment discount rate… etc.)
• Define the processes to open an account, set a credit limit, how to recover the bills …etc.
• Define the rules of operation at each stage & business strategy.
• Clarify the objectives of the company and set best practices that must be followed by the entire organization.
• Limits the internal conflicts that inevitably appear when the personal interests of the people involved differ.
• Communicate between vendors, business management and finance department.
• Specifies the operating standard for all stakeholders while providing rules for exceptions.
• Indeed, the principle of the trade specific to a business relationship to another, from an economic context to another.
Define operating modes in accordance with the interests of the company.
Define vertically (hierarchically subordinate) and horizontally (across multiple services).
Define chart of authority which determines each decision committing an additional risk to the company the power of validation of each actor

Credit Management Processes
Corpseed helps you to define rules on all steps that are likely to prevent business risk by committing financial resources. This shall be done in order to manage this risk and to diminish them.

Corpseed helps businesses with the credit management policy which includes all the steps described above, also helps in its implementation.

Implementation of such rules give a direction to the company and its employees and helps protect as much as possible from overdue and losses,

Establishment and implementation will help to improve cash flow and operational capital needs of the company and to secures its future and encourage its development.

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