Finance Credit Management Memo

To: All Employees

From: [YOUR NAME]

Date: [Month, Day, Year]

Subject: Finance Credit Management

Dear Colleagues,

As part of our ongoing efforts to maintain financial health and sustainability, [Your Company Name] is implementing new credit management policies effective immediately. These changes are vital for enhancing our credit control and ensuring we continue to operate on a stable financial foundation.

Credit Assessment Criteria:

• All new customers will undergo a rigorous credit assessment before credit approval.

• Existing customers' credit limits will be reviewed periodically based on their payment history and financial standing.

Payment Terms:

• Standard payment terms will be strictly 30 days from the invoice date.

• We will offer early payment discounts to encourage quicker payment and improve cash flow.

Late Payment Penalties:

• Late payments will incur a penalty of [specific percentage]% per month on the outstanding amount.

• Consistently late payers may have their credit terms revised or revoked.

Account Monitoring:

• All accounts will be monitored regularly for any signs of financial distress.

• Regular reports will be generated to track outstanding debts and payment patterns.

Dispute Resolution:

A clear procedure will be established for resolving invoice disputes to ensure they are settled promptly and fairly.

Training and Compliance:

All relevant staff will receive training on the new policies to ensure full understanding and compliance. Everyone must adhere to these policies to protect the financial integrity of [Your Company Name].

We appreciate your cooperation and commitment to these new measures. If you have any questions or need further clarification, please do not hesitate to contact the Finance Department.

Best Regards,

[Your Name]

Finance Department