Credit Control Policy Template

Why a written policy matters

Most Australian businesses chase debt by instinct rather than by rule, which means results swing with whoever happens to be doing it. A written credit control policy fixes the process in place so every customer is treated consistently, every overdue invoice triggers the same steps, and nothing slips when a key person is on leave. It also protects you: a documented, even-handed process is far easier to defend if a customer ever complains or a matter heads to court. The policy below is a general template for commercial (business-to-business) debt across QLD, VIC, NSW and the ACT — tailor it to your trade and have it reviewed before you rely on it.

The policy template

Adapt each clause to your business, then have it approved by the owner or board:

1. Purpose

To protect cash flow by setting consistent rules for granting credit, invoicing, and recovering overdue commercial accounts.

2. Ownership

The credit controller (or named role) owns day-to-day collections; the owner approves credit limits above the standard threshold and any write-off.

3. Standard terms

Default payment terms are [7 / 14 / 30] days from invoice date. Terms appear on every quote, order and invoice.

4. Credit approval

New accounts complete an application and ID/ABN check before credit is granted. Limits above $[amount] require owner sign-off.

5. Invoicing

Invoices issue within [24 hours] of delivery, showing the amount, due date, accepted payment methods and bank details.

6. Collections cadence

Reminder at due date, firmer follow-up at +7 days, phone call at +14, letter of demand before +30.

7. Escalation

Accounts unpaid at [30–45] days past due are escalated for external recovery.

8. Records

Every contact, promise and dispute is logged with date and outcome.

9. Review

The policy is reviewed at least annually, or after any material change in the law or the business.

How to use it

Copy the clauses above into your own document and replace every bracketed value with your real terms, thresholds and role names — a template with the brackets left in is worse than none, because it signals the rules were never actually set. Walk the finished policy through with everyone who touches the ledger so they understand not just the steps but the reasoning, then store it where the team can find it and date the version. Pair it with a defined endpoint: when in-house follow-up stalls, a commission-only agency such as Merion can take over — refer a debt. Build the supporting documents from the matching collections policy template so your cadence and your policy say the same thing.

Keep it alive

A policy that sits in a drawer changes nothing. Put a recurring reminder in the calendar to review it once a year, and revisit it sooner whenever your terms, your trade or the relevant law shifts. Capture exceptions in a short log — who approved the variation, for which account, and why — so the standard rule stays intact while genuine one-offs are still recorded. Over time that log tells you whether your thresholds are set in the right place or whether the same customers keep needing special treatment.