Credit Policy template for Google Docs and Word

The first pages of the Credit Policy template

Every page (8)

Overview

Selling on credit without written rules lets sales promise limits nobody checked and lets overdue invoices age in silence. This eight-page policy gives finance managers one document that covers credit checks, limit bands, payment terms, the collections timeline, disputes and write-off authority.

The sample follows Ivywell Advisory, a fictional firm with $12.4M of annual credit sales, a 42-day DSO target and bad debt near 0.4% of sales. Replace the terms, limit bands, chase days, provision rates and approvers with your own, and delete the pages you do not need.

Useful for

A new finance manager replacing informal credit habits with one written policy before the board meets
Sales managers checking what limit and terms they may promise before they quote a new customer
Credit controllers following a day-by-day chase calendar and recording each contact for the next caller

What's included

A title page with owner, version, key figures and the three decisions the policy makes
A credit checks table showing what is confirmed, from what source, by whom and when
A limits page with a heat map and a register of limit risks, owners and responses
Payment terms written as numbered clauses with a late-charge rule and responsibilities
A balance sheet extract showing debtors, and a write-off status page with KPIs and actions
A write-off authority table by amount, plus a guide page for making the policy your own

How to use it

1
Click Make a copy in Google Docs, then confirm on the Google page. The copy is saved to your own Google Drive.
2
Enter your standard terms, limit bands and the person who approves each band, then match the chase days to your terms.
3
Set your provision percentages and write-off tiers, and replace the sample balance sheet and KPIs with your own figures.
4
Replace the sample names with your own people and check that each limit and day count agrees on every page.
5
Delete the guide page, then share the policy or present it to the board.

What you need

Requirements

A Google account with access to Google Drive

Works with

Google Docs
Microsoft Word (download the .docx)

Questions

Can I use this as a customer credit application as well?

Yes. The credit checks page lists what to ask for, so copy its rows into an application form and add the trade reference and insurer details you use.

Which numbers should I change first?

Start with your payment term, the limit bands and who approves them, then the chase days, provision rates and write-off amounts. Other pages repeat them.

Is the sample content real?

No. Ivywell Advisory, its people and every figure are fictional and made up for the example. Replace them with your own before you share the policy.

#credit-policy
#credit-control
#debt-collection
#bad-debt-write-off
#payment-terms
#finance
#google-docs

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