Credit Policy

This is the homepage for articles about credit policy in construction. Credit policies are sets of guidelines that determine which customers get credit, set payment guidelines for those customers that get credit, define limits for outstanding credit accounts, and outline the framework for how to deal with outstanding or overdue accounts. Continue reading to learn how to use credit policies to get paid on time.

It’s no secret that the construction industry relies on credit. That said, it’s important to make sure your credit policy maximizes profits and minimizes the chances of taking on bad debt. It should also include a mission statement that outlines your credit goals, tiers that determine how much credit is divvied out, a system to evaluate new customers, built in securities that mitigate risk, and recovery or litigation plans and systems in place.

If you can’t find the information you need on the blog, you can turn to the Expert Center for help with credit policy. The Expert Center allows construction attorneys to provide construction professionals with free advice that helps them solve their payment issues. Browse the already asked questions or ask your own question for free.

Most Recent Posts on Credit Policy

How to Reduce DSO of Construction Invoices

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Credit teams in the construction industry constantly battle late payments. In particular, subcontractors and suppliers performing labor or supplying materials to help permanently improve a property are farther removed from the...

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10 Things to Consider When Writing A Credit Policy

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Credit policies are critical documents for nearly every organization, but especially for those B2B businesses who manage trade credit. Nearly every construction industry business is in this position, as construction...

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