---
title: "Credit Terms"
canonical: "https://kb.myframeworks.com.au/space/FRAM/28382486/Credit%20Terms"
format: markdown
---
> ℹ️ The terms of credit are the conditions upon which a seller supplies to a purchaser. For example,** 'Account Due Strictly 30 days'**. In setting the terms of credit, the following should be considered:
> ℹ️ 
> ℹ️ - **Set standard terms**: varying credit terms generally makes it more difficult to achieve a systematic approach to credit control.
> ℹ️ - **Do not give credit unless necessary**: where possible, sales should be cash on delivery. However, where credit is expected, supply on industry standard terms. Suppliers should not be persuaded into giving extended terms to win a sale unless the implications of this have been carefully thought out.
> ℹ️ - **Ensure that the terms are clearly stated**: define the terms of trade to all new customers and seek their agreement to those terms. Remind customers who over-step the terms of the conditions of sale.
> ℹ️ - **Maintain discipline on the terms**: having established the terms at the outset, work at ensuring that customers adhere to those terms. Purchasers may attempt to extend the terms and it is part of good credit control management that the system polices the credit situation with the terms as the reference point and gives rise to action where the credit terms are breached. Suppliers should be firm but fair in applying the terms laid down.