Your Credit Management Health Check
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Account Set-up
Are new customers issued a welcome pack containing your Terms & Conditions of sale, payment terms, the credit limit granted, dispute process and contact details for the credit function?
*
Yes, all of these information are gotten
Yes, but with some of the information
No
Does the finance department have knowledge of which customers are trading on standard T&Cs or fully executed contracts?*
Yes
No
Does the credit function know which customers require purchase order numbers on invoices?*
Yes
No
Credit & Risk
Are all new customers credit checked to obtain credit scores and understand their ability to repay?
Yes
Only Some
No
Are clearly defined and documented credit limits visible at order entry, and monitored and maintained to ensure customers remain within their credit limits?
Yes
We are in the process of drafting these
No
Does the business have trade credit insurance in place?
*
Yes
We are in the process of searching and setting up these policies
No
Invoicing
Does your invoice template clearly display your bank details, payment terms and/or invoice due date, and clearly defined product or service description?
Yes
No
When are your invoices produced and sent to the customer?
*
On dispatch/delivery of goods or service completion
Routinely on a weekly/monthly/month end basis
Adhoc / No set time
Does the credit function have the ability to send invoices electronically?
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Yes
No
Cash collections
Does the business have a clearly defined monthly cash collection cycle?
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Yes
We are in the process of setting up and implementing these policies
No
Are high-risk customers managed outside of standard collections processes?
*
Yes
No
Is there a defined payment reminders template and strategies for reminding customer on credit sales?
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Yes, Our reminders are automated with well-defined reminder templates
Yes, We have a reminder template but reminders are done manually by A/R team
No
Is there a full visibility by the Finance team into the company Day sales outstanding and Account receivables?
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Yes
We are in the process of searching and setting up these policies
No
Do you have formal processes in place which guide the credit function on how to deal with late payment and bad debt?
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Yes
We are in the process of searching and setting up these policies
No
Credit function
Do accounts receivable KPIs form part of senior management month-end reporting and is it visible across team?
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Yes
We are in the process of searching and setting up these policies
No
Have your company considered Invoice financing as a way to Improve cash flow?
*
Yes
We are in the process of searching for a partner
No
Does your Account receivables solution help with automated Payment reconciliation?
*
Yes
No
Is there a clear understanding of the departments and teams which impact the sales order-to-cash cycle?
*
Yes
No
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