The granting of credit by businesses in today's economy is accepted as the norm. Flowing from this is the inevitable evil of bad debt, bad debt handovers and bad debt write-offs. While this evil can not be completely eradicated it can be controlled and reduced and you can ensure that bad debt recovery is effective.

While we most certainly can help you in your bad debt recoveries, we can also go one step further and assist:

• you in reducing your bad debt handovers;
• as well maximising our effectiveness in bad debt recoveries

by having an effectiveness credit granting procedures.

The three fundamentals to an effective credit granting procedure are as follows:

1. Efficient Credit Granting System
Setting up effective credit control structures and administration is the first step in resolving debt collection problems. We offer a service whereby an assessment is made of your business and credit control systems. After doing this we will make a recommendation on systems modifications and any training requirements.

Our recommendations and training suggestions range from general policy, credit granting policy, trading terms, credit control systems and checks, debtor audits and securing debtors to debt handover policies.

2. A Signed Credit Application Form incorporating Standard Trading Terms and Conditions
It is a vital document to be used for a number of purposes:

• Compiling information from the potential client from which you can make the decision on whether you wish to grant them credit
• It allows you to incorporate in the conditions limiting your liability towards the client
• It allows you to secure the debt by way of suretyships, cession of book debts and other securities
• It assists the attorney who is attending to the debt recovery in his task

The number of creditors out there trading with no credit applications incorporating standard terms and conditions or even those with poor and ineffective standard terms and conditions is alarming and in this regard we urge you to use the services of our alliance partner Bentley Attorneys to draft you a sound credit application form incorporating standard terms and conditions which is suitable to your particular industry.

3. Credit Bureau Search
An integral cog with a sound credit granting system and credit application form incorporating standard terms and conditions is a sound credit bureau search. While you can check the potential client's credit worthiness by checking with his bank or taking up credit references the most effective method of checking the credit worthiness of the potential client is to conduct a credit bureau search.

Brett Bentley
Bentley Attorneys, Durban