Customer credit terms
Before you offer credit, consider the impact of late or non-payment on your cashflow and have a plan to reduce your risk. You can do this by running credit checks, only offering credit on subsequent sales or setting limits. And you can provide incentives such as early payment discounts.
You can set your credit terms at three levels:
- default–you can set default terms to apply to all new customers in the Sales tab of the Preferences window (Setup menu > Preferences > Sales tab > Terms button).
- customer–for existing customers, youcan override the default terms in the Selling Details tab of the customer's card (Card File command centre > Cards List > Customer tab > open the customer's card > Selling Details tab).
- transaction–you can override customer terms for a sale by clicking the Terms arrow in the Sale window.
How you set your terms is up to you. If you only offer credit after doing a credit check, you could set your default terms to a cash-only option (such as COD) and update a customer's terms after credit is approved.
Or, if your only offer credit on subsequent sales, you could set your default terms (such as 7 days) and override the terms with a cash-only option when you record the first sale. Future sales will use the default terms.