Accounts Receivable Policies and Procedures - Credit Holds

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Policies & Procedures

This policy out lines procedures for dealing with withholding or delaying an order as a result of customer non-payment. In addition, this policy deals with withholding or delaying an order due to: the perception of a risk condition that leads a company to believe it will not be paid on a timely basis; an account has exceeded or could exceed its approved credit limit; a delinquency condition on the customer’s account, and the existence of invalid or unauthorized deductions.

According to this policy, the decision to withhold from immediate release or otherwise delay a customer’s order is a serious matter due to short lead times for deliveries.

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