If your business doesn’t have a credit policy it should get one or create one as soon as possible. The main benefits of good credit management policies are to ensure a business maximises credit sales with the minimum amount of risk. Credit risks should be identified to reduce the risk of sales going wrong and invoices not being collected in accordance with agreed terms. Your credit policy should detail the requirements you have set for your terms of payment. Recent research suggests that UK SME’s are owed on average £130,000 in late payments.