---
title: "Create a Credit Account"
canonical: "https://kb.myframeworks.com.au/space/FRAM/28384610/Create%20a%20Credit%20Account"
format: markdown
---
Consider the credit terms as the point at which you should expect payment, and after which point, your customer has breached the conditions of sale. Good credit control does not give rise to punitive action, but rather to persuading the customer to remain within and to adhere to terms laid down.

When a customer application for credit has been approved, there are certain fields in the customer setup that allows the Credit Manager to monitor the terms that have been negotiated for the account. 

> ✅ Refer to [Customer Credit Terminology](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28382454) for further information.

The vetting process should be reviewed regularly on the basis of experience in dealing with the account, and the credit rating updated accordingly. The key is to be professional and consistent in the evaluation of credit worthiness.

In that regard, potentially large accounts should be treated exactly the same as small accounts. Just because your business is dealing with a large reputable company, this should not necessarily give better payment expectation, indeed it may well be that the larger customer expects more credit and takes longer to pay. It may well be that the large customer requires 90 days to pay and this could cause difficulties with cash flow if the amount supplied forms a high proportion of total sales in any one month.