To be sure your company has a sound credit policy, there are a number of steps you can take. First, you should have written credit policies and a well-defined document for credit agreements and credit applications. Contracts, invoices and follow-up letters should be clear and policy manuals should outline the guidelines for assessing credit risks. Methods for collections should be clarified for the customer and timetables for collections should be properly spelled out. As a backup, you should have a creditors’ rights attorney available and your company should also have an established relationship with an ethical, bonded collection agency. Finally, as a last resort, there should be well defined criteria for making decisions about when to further pursue or write off a delinquent account. Taking steps to be thorough will optimize the credit relationship with your customers and improve your chances of being paid in a timely fashion.