credit policy definition

credit policy

Clear, written guidelines that set (1) the terms and conditions for supplying goods on credit, (2) customer qualification criteria, (3) procedure for making collections, and (3) steps to be taken in case of customer delinquency. Also called collection policy.

credit policy is in the Accounting & Auditing and Banking, Commerce & Finance subjects.

credit policy appears in the definitions of the following terms: collection procedure, accounts receivable (A/R) turnover, days accounts receivable (Days A/R), collection period ratio and collection policy

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