You wrote that a company should have a written credit policy. There are many companies who do not bother with this. What would you say to them – or in this case to us to justify the time and trouble and cost?

Answer: A credit policy is a roadmap for the credit department. Without a policy, employees are free to make up rules as they go along and this is unlikely to result in optimal results. Without a credit policy, there are no rules and standards resulting in inconsistent or incorrect credit decisions.