Finance Credit Management Policy
Finance Credit Management Policy
Policy Statement
Our Finance Credit Management Policy is committed to ensuring efficient credit control and management to maintain financial stability and integrity across our operations. This policy outlines the critical provisions and procedures for extending, managing, controlling, and collecting credit.
Objective of The Policy
This policy aims to provide guidelines for effective management and monitoring of credit exposure, mitigating financial risks, ensuring smooth recoveries and sustaining a solid customer base.
Scope
This policy applies to all credit operations, credit extensions, credit dealings, and related financial factors within the organization.
Policy Guidelines
1. Credit Approval
All credit decisions should be adhered to the designated approval limits and evaluated based on the strength of the applicant's creditworthiness, financial position, and repayment capacity.
2. Credit Limit
Credit limits should be established based on the customer's credit rating, past payment behavior, financial health and ability to repay.
3. Credit Terms
Credit terms including interest rate, payment schedule, and due dates should be clear, fair and must comply with applicable laws and regulations. Any change in terms should be informed to the customers in a timely manner.
4. Risk Management
Regular assessments of credit risk associated with extensions of credit shall be conducted and suitable mitigation strategies applied. Risk provisions should be kept and periodically updated based on the risk level of credit portfolio.
5. Collection and Recovery
Effective collection measures and recovery strategies should be in place to ensure prompt collection of dues and minimize bad debt losses.
6. Employee Education
Employees involved in credit operations should be provided with adequate training to understand and implement this policy effectively.
Review of the Policy
This policy will be reviewed annually, commencing from 2051, or as deemed necessary by the management.
Contact Us
For any further details about this policy, feel free to drop an email at [YOUR COMPANY EMAIL].
