Credit policy (kreditpolitik)
Also known as credit policy, credit rules, kreditregler
A credit policy is the organisation's written rules for who is granted credit, how much, on what terms — and what happens when the money does not arrive.
In practice
Without a credit policy, credit decisions are taken by the salesperson on the phone, and escalation depends on whoever happens to have the time. That is where the losses arise — not in the collections department.
A credit policy that works answers four questions: who is granted credit, and how much, when do we require security, when do we chase, and how hard, and when is the case handed over. And it answers them as rules, not as opinions — so that the decision does not have to be taken from scratch every single time.
Where it commonly goes wrong
- The policy exists, but escalation has stalled. Rules that are not enforced are worse than no rules: customers learn quickly that nothing happens.
- Sales can overrule credit with no consequence. Then there is no policy — there is a recommendation.