Credit Control Why Grant Credit? Advantages: Disadvantages:
Increased customer sales Cost of irrecoverable debts, goods not paid for
Attractive marketing aspect Interest costs to company
Role of credit control: To minimise the interest costs & irrecoverable debts costs to the company. 2 main stages in the credit control function: 1. Ordering of goods 2. Collection of money £ Ordering

1. CUSTOMER PLACES ORDER
2. CUSTOMER'S CREDIT STATUS ESTABLISHED
3. CUSTOMER OFFERED CREDIT
4. GOODS DESPATCHED
5. INVOICE DESPATCHED

Collection of money £ 1. Customer receives invoice
2. Statement sent to customer
3. Reminder letter
4. Phone call to customer
5. Cash received

	Created by Sharon Yates almost 9 years ago

Assessing Credit Status