Post by asadul8555 on Feb 25, 2024 9:23:29 GMT
Credit and collection policies work as allies for both the company and the customer, since, by granting credit, the consumer is able to purchase the product or service more easily. And, with a well-structured collection policy, the company keeps the financial health of the business protected, reducing defaults. Therefore, imagine that the collection policy works with the aim of helping sales, moving cash flow and, at the same time, ensuring business security. How important is credit and collection policy? Basically, a company's financial health works based on its cash flow , that is, contrary to what many think, business is not defined by the profit margin that the organization has. But rather because of the working capital that circulates monthly, positively moving cash flow. In short, working capital is the monthly amount that enters your cash flow and allows you to keep monthly bills such as rent, electricity, water and internet up to date. When the company has a very high number of defaults, all working capital planning is compromised, resulting in financial problems and compromising the stability of your business.
Therefore, know that the greatest importance of credit and collection policy is linked to the security it offers to your financial control management . Furthermore, a well-implemented policy facilitates greater access to consumer credit , which consequently increases the number of sales, as the customer has their needs supported in relation to installments, monthly payments and different ways of acquiring what they want. The control of everything that comes in and out also undergoes changes, making everything Asia Phone Number List more detailed, allowing you to know exactly the amount that comes in and should come out of your cash register, monitoring this entire process in an easy and practical way. Credit and collection policy template First understand that for each credit policy there is a collection policy, and both are normally divided into three stages: liberal, strict and moderate. As in the example in the table below. Credit and collection rules Credit Charge Increase the sales Liberal Strict Maintain stability Moderate Moderate Adapt sales to production capacity Strict Liberal We soon realized that, when there is an intention to increase sales, credit must be released with greater flexibility , which on the other hand, must influence collection so that it is carried out rigorously, in a way that prevents default.
In another aspect, when the company is going through a period of slowdown and does not have products or services in great demand, charging can be more liberal, as, in return, the release of credit will be more rigorous. The moderate state is found in situations when the number of sales is low, so that the collection action can be carried out in the same way as the payment facilitation. It is important to remember that in both stages it is essential to have an adequate support and planning model for this management. Check out an efficient example below to implement in your company and ensure the security of your business. Example of a company's credit and collections policy First, for the policy to be applied consciously and correctly, your company needs to know the customer and analyze some important factors for granting loans. It is extremely important to check some documents, such as CPF or CNPJ and Score, so that the financial credibility of whoever is purchasing the service or product is analyzed. Additionally, pay attention to the following factors: Capacity: the consumer's ability to pay for the purchase of your product or service. Capital: here you can see that the entire analysis must be done globally, after all, a client is only able to pay if they have the resources (capital) to pay the debt.
Therefore, know that the greatest importance of credit and collection policy is linked to the security it offers to your financial control management . Furthermore, a well-implemented policy facilitates greater access to consumer credit , which consequently increases the number of sales, as the customer has their needs supported in relation to installments, monthly payments and different ways of acquiring what they want. The control of everything that comes in and out also undergoes changes, making everything Asia Phone Number List more detailed, allowing you to know exactly the amount that comes in and should come out of your cash register, monitoring this entire process in an easy and practical way. Credit and collection policy template First understand that for each credit policy there is a collection policy, and both are normally divided into three stages: liberal, strict and moderate. As in the example in the table below. Credit and collection rules Credit Charge Increase the sales Liberal Strict Maintain stability Moderate Moderate Adapt sales to production capacity Strict Liberal We soon realized that, when there is an intention to increase sales, credit must be released with greater flexibility , which on the other hand, must influence collection so that it is carried out rigorously, in a way that prevents default.
In another aspect, when the company is going through a period of slowdown and does not have products or services in great demand, charging can be more liberal, as, in return, the release of credit will be more rigorous. The moderate state is found in situations when the number of sales is low, so that the collection action can be carried out in the same way as the payment facilitation. It is important to remember that in both stages it is essential to have an adequate support and planning model for this management. Check out an efficient example below to implement in your company and ensure the security of your business. Example of a company's credit and collections policy First, for the policy to be applied consciously and correctly, your company needs to know the customer and analyze some important factors for granting loans. It is extremely important to check some documents, such as CPF or CNPJ and Score, so that the financial credibility of whoever is purchasing the service or product is analyzed. Additionally, pay attention to the following factors: Capacity: the consumer's ability to pay for the purchase of your product or service. Capital: here you can see that the entire analysis must be done globally, after all, a client is only able to pay if they have the resources (capital) to pay the debt.