Credit Sales Management System-World Credit Organization

4.2 Credit Sales Management System

This section introduces a sample credit sales management system for your reference. Generally speaking, if an enterprise is setting up a credit sales management system for the first time, it can directly use this system, and then improve and improve it according to its actual situation in the work. If the company does not have a board of directors, the executive director or general manager may perform the duties of the board of directors in the system.

Credit sales management system of Zhongyong Group Co., Ltd.

1. General

1.1 In order to control the risk of credit sales and realize the sustainable development of the enterprise, this system is formulated.

1.2 The company's credit sales business is managed by the company's board of directors, credit management department, finance department, and sales department in accordance with the provisions of this system.

1.3 If necessary, relevant departments can make corresponding work instructions according to this system.

1.4 The company's staff should be diligent and diligent, and should not cause losses to the company due to lack of responsibility.

1.5 The staff of the company shall not collude with customers, use the credit sales system to seek improper benefits or embezzle the interests of the company.

1.6 Regardless of the amount of credit sales, all credit sales shall be carried out in accordance with this system.

2. Division of management responsibilities

2.1 The responsibility of the company's board of directors for credit sales management is:

a) Approve and approve the total limit of credit sales;

b) Approve and approve the credit sales management system;

c) Approve and approve the suggestions for improving the credit sales system;

d) require the staff of credit management department, sales department and financial department to become members of World Credit Organization [WCO];

e) The staff of the credit management department are required to have international credit practice qualifications and obtain practice registration;

f) Required to organize necessary training for personnel involved in credit sales management.

2.2 The general manager's credit sales management responsibilities are:

a) Implement relevant systems and requirements for approval by the board of directors;

b) Sign and approve the credit sales contract and credit sales limit initially reviewed by the credit management department;

c) Make improvement suggestions to the board of directors for the suitability and deficiencies of this system.

2.3 The credit sales management responsibilities of the Finance Department are:

a) After considering the financial security and the opinions of the sales department, draw up the total annual credit sales limit, the quarterly credit sales total limit and the monthly total limit, and then submit it to the board of directors for approval;

b) Continuously put forward suggestions for improvement of the suitability and defects of this system.

2.4 Credit Management Department's credit sales management responsibilities are:

a) Conduct a preliminary review of the customer's application for credit sales, and send the approval result and the model of the credit sales contract to the sales department;

b) After the preliminary review of the credit sales contract submitted by the sales department, submit it to the legal representative or his authorized personnel for signature;

c) Register, monitor and collect accounts receivable;

d) Evaluate the integrity of customers;

e) Receive suggestions and opinions from customers, and coordinate and handle disputes with customers.

f) Transfer to ICE8000 credit agency for collection of accounts receivable that have been unsuccessful for more than three times and overdue for three months;

h) Continuously put forward suggestions for improvement of the suitability and defects of this system.

2.5 The credit sales management responsibilities of the sales department are:

a) Receive the customer's credit application and submit it to the credit department;

b) According to the credit sales limit and contract template approved by the credit management department, negotiate and sign a credit sales contract with the customer;

c) Send the draft contract negotiated with the customer to the credit management department for review, and hand over the credit sales contract after signing and approval to the customer;

d) According to the actual sales work, put forward opinions on the limit of credit sales to the Finance Department;

e) Continuously put forward suggestions for improvement of the suitability and defects of this system.

3. Identification and control of credit sales risks

3.1 For the credit sales risks and preventive measures that exist in the company, see Attachment 1 "Credit Sales Risk Identification and Preventive Measures Table".

3.2 For credit sales risk control process, please refer to Annex 2 "Flowchart of Credit Sales Risk Control (for External Risks)" and Annex 3 "Flowchart of Credit Sales Risk Control (for Internal Risks)".

4. Reward and punishment measures

4.1 For the staff with better performance, the company will praise them in their personal credit files at the end of the year.

4.2 For workers who have caused losses to the company due to insufficient sense of responsibility, the company will issue warnings, demote them according to the circumstances, and record them in their personal credit files;

4.3 For those who collude with customers to seek improper benefits or embezzle the company's interests, the company will demote, dismiss, or expel them according to the circumstances, and record them in their personal credit files; if they refuse to return improper benefits or compensate the company for losses, they will be investigated by law responsibility.

5. Supplementary Provisions

5.1 The change of this system shall be approved by the board of directors. The credit management department is responsible for the interpretation of this system.

5.2 This system will come into effect on the date of issue. The signing of credit sales contracts after the issuance of this system shall be carried out in accordance with this system. For credit sales contracts that are being implemented on the date of issuance of this system, the examination and approval procedures shall be performed in accordance with this system within 60 days before the contract is changed or extended.

Appendix 1 "Credit Sales Risk Identification and Preventive Measures Table"; (note the attachment, see Section 1, omitted)

Appendix 2 "Flowchart of Credit Sales Risk Control (For External Risks)";

Appendix 3 "Flowchart of Credit Sales Risk Control (for Internal Risks)".

Central Sales Management System of Zhongyong Group Co., Ltd.

May 28, 2008

The above content is excerpted from "Building an Integrity Unit - ICE8000 Integrity Management" (written by Fang Bangjian, free to use, but please indicate the source)