A/R 404 Credit Limit Increase

Introduction:  Understanding Responsibility

This section provides an overview of the credit limit increase policy for American Stone and Starstone sales. Understand that the AR department acts as a liaison between sales and management for credit increase requests.

Gathering Information

You'll need to gather necessary information when a salesperson presents a customer needing credit changes. Factors to consider include customer request, specific reasons for change, business relationship history, purchase frequency, invoiced amounts, and payment history within terms.

Identifying Customer Request and Reasoning

Determine if the customer initiated the request for credit changes. Consider whether the request stems from a specific job requirement or a long-term business need.

Assessing Business Relationship

Evaluate the nature and volume of business with the customer over time. Analyze the total amount invoiced and the frequency of purchases.

Reviewing Payment History

Check if the customer regularly pays within the agreed-upon terms. Assess if the customer has any outstanding payment issues.

Implementing Changes

To make changes, access the customer's information through the sales menu.

Navigate to the customer's profile and locate their credit limit and invoicing terms.

If approved, update the credit limit or invoicing terms accordingly.

Save the changes to finalize the adjustments.