| Article Index |
|---|
| Effective strategies to manage debtors |
| Set Credit Policy |
| Review Payment History |
| All Pages |
1. Set a credit policy
Set the credit terms and credit limit for each and every customer. This will set the boundaries for doing business with your customers.
Once the policy is in place, stick to it as much as possible. It will be much easier to follow up on slow payers if the terms are clearly laid out from the beginning.
On special occasion, you may modify the credit terms. MYOB Accounting allows you to modify the credit terms for specific invoice, provided the user has been given the rights to modify the credit terms and credit limit when raising the invoice.
Check out the references and credit ratings for new customers. Try them out first, ask for upfront payment on the first few deals, before allowing them to purchase on credit terms.
Make it easy for customers to pay you! Encourage customers to make payments directly to your bank account. Give a few options and state payment instructions clearly on the invoice.
Give discounts for early payment. It helps to improve your cashflow, and at the same time it reduces the possibility of delinquent accounts.
The most efficient way to set credit terms in MYOB Accounting software is to set the default terms which is applicable to a majority of the customers, and then go the 'odd-one out' customer to customise the terms and credit limit applicable to him.
To set default credit terms for customers, go to Setup > Preferences > Sales, and click on the Terms icon found at the bottom. Enter the most appropriate terms applicable to your company.
The default customer terms will be applicable for all new customers that you create. To modify a particular customer's credit terms, go to Card File > Cards List. Select the customer. Click Selling Details, and change the relevant details under Customer Terms Information.
