{"id":15,"date":"2008-05-16T03:14:49","date_gmt":"2008-05-16T10:14:49","guid":{"rendered":"http:\/\/creditcontrol.me.uk\/?page_id=15"},"modified":"2008-05-16T03:14:49","modified_gmt":"2008-05-16T10:14:49","slug":"credit-period","status":"publish","type":"page","link":"https:\/\/www.creditcontrol.me.uk\/credit-policies\/credit-period\/","title":{"rendered":"Credit Period"},"content":{"rendered":"<div class=\"post-content\"><p><strong>Should you give credit, if so for how long?<\/strong><\/p>\n<p>Most companies have set credit periods; the detail of such should be stated on the invoice, if there are not you are looking for trouble off the bat.\u00a0 If you don&#8217;t have a policy regarding the credit period, it is an important place to start building your policies from.<\/p>\n<p>Credit periods are influenced by several factors:<\/p>\n<ul class=\"unIndentedList\">\n<li> Strength of your position in your market<\/li>\n<li> Attitude of your competitors<\/li>\n<li> Accepted practice in your industry<\/li>\n<li> Your attitude to risk<\/li>\n<li> The desire to increase sales<\/li>\n<\/ul>\n<h3>There are three main reasons to make the credit period as short as possible.<\/h3>\n<p>1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Very few customers will pay to terms &#8211; whatever those terms are debtors will push them like little children to find your limits.<\/p>\n<p>2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Many companies will always as their own company policy add a fixed term to your terms and their accounts receivable will be automatically set up this way.\u00a0 Simply they will add 30 days &#8211; therefore an invoice due 30 days will then become 60 days; an invoice due 7 will be 37.<\/p>\n<p>3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Collection procedures are geared around the due date, and credit control sanctions will only start after this date.<\/p>\n<h3>Net Monthly or Not<\/h3>\n<p>Invoices due net monthly add an extended period of credit to the invoice.\u00a0 For example an invoice issued on the 1<sup>st<\/sup> January would not be payable until the end of February.\u00a0 However if the invoice is 30 days it would be payable by the end of January &#8211; this is a huge difference for the cost of credit.\u00a0 Monthly accounts add an average of 15 more days than 30 day credit periods.<\/p>\n<h3>No Credit?<\/h3>\n<p>It is worthwhile considering if you should give credit.\u00a0 Without credit there is no need for credit control, saving on employment costs, administration, audit, debtor&#8217;s ledger, and no statements.\u00a0 It is worthwhile considering what the effects on your business would be if the concept of credit did not exist.<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Should you give credit, if so for how long? Most<a href=\"https:\/\/www.creditcontrol.me.uk\/credit-policies\/credit-period\/\">Read More<i class=\"fa fa-long-arrow-right\" aria-hidden=\"true\"><\/i><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":13,"menu_order":1,"comment_status":"open","ping_status":"open","template":"","meta":{"footnotes":""},"_links":{"self":[{"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/pages\/15"}],"collection":[{"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/comments?post=15"}],"version-history":[{"count":0,"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/pages\/15\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/pages\/13"}],"wp:attachment":[{"href":"https:\/\/www.creditcontrol.me.uk\/wp-json\/wp\/v2\/media?parent=15"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}