Policy, process, and controls: are you managing them effectively?

Credit professionals are responsible for chasing payments and keeping cash flowing through a company – and this can be a full-time job in itself. But there’s a lot more that a credit management team needs to do to ensure the business function runs smoothly.

For example, credit professionals need to be sure to pay close attention to policy, processes, and controls to ensure the O2C is running smoothly, efficiently and in a way that ‘s compliant with all relevant regulations.

Policy, process and controls

Let’s look at each of these three things in more detail:


Your credit management policy is an operational document that defines the rules for the O2C process, and it outlines rules that the entire company needs to follow in terms of granting credit, making a sale and collecting payments, and it also defines what is expected from clients.

A good credit management policy should be reviewed and updated on a regular basis to ensure it continues to meet the needs of the business and an ever-changing market. It should be created with the overall business strategy in mind, with particular attention paid to mitigating risk and capitalizing on opportunities.

It’s also important to remember to share your credit management policy with the rest of the organization (and relevant parts should be communicated to your clients) to ensure everyone is working toward the same goal.


Having a defined process can help you to make decisions and take effective action when problems arise.

Taking time to think about and improve your processes can also help you to save time and provide a more consistent level of service to all of your customers. Templates for correspondence and process flowcharts can make a credit professional’s job easier and reduce repetition, meaning that you can spend more time building customer relationships.

If you’re looking to improve your credit management process, you may also want to review the tools that you use to manage information. For example, if you’re still using spreadsheets to organize your credit management data, you may want to consider upgrading to specialist credit management software that will make it easier for you to keep track of client records, share information, generate reports and automate actions.

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Keeping up with changes to regulations and legislation is essential, and there needs to be a system in place to ensure that controls are embedded and enforced.

Carry out regular self-audits to check for problems, make sure any breaches are reported and acted upon and consider incorporating fraud prevention checks as well. It’s also a good idea to keep up with the latest industry news, so you can become aware of any new requirements, and be sure to get your IT team involved to look after things like data security.

Find out more

If you’d like to find out more about how OnGuard’s credit management software can help you effectively manage your policy, process, and controls, please get in touch on +31 (0)294 25 6666 or contact@onguard.com.

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