Credit Control Policy

A written credit control policy for a small or medium-sized UK business that sells on credit to business customers (and, if relevant, to consumers). It sets out who may open a credit account, how credit checks and limits work, your standard payment terms, a day-by-day chasing timetable, when accounts are stopped, when interest and compensation are claimed, how debts are escalated to legal action, and who can authorise a write-off.

Having the rules written down makes chasing consistent and less personal, helps new staff, supports your bank or lender, and gives you a clear audit trail if a debt ends up in court or a customer becomes insolvent.

• When you start offering credit terms, or when your aged debt is growing
• When you take on a bookkeeper, credit controller or finance assistant and need to hand over a clear process
• When a lender, invoice finance provider or credit insurer asks for your credit control procedures
• As part of an annual review of your finance procedures

• Fill in the business details, the policy owner and the approval date
• Tailor the credit limit bands in section 6 and the approval levels in section 17 to the size of your business
• Adjust the chasing timetable in section 10 to suit your terms – the days are examples
• Delete any parts that do not apply (for example, section 18 if you never sell to consumers)
• Share it with everyone who raises invoices, takes orders or deals with customer accounts, and record that they have read it