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Credit Control & Credit Management Course

This page contains our free online credit course. It will teach you the basics of credit control and credit management.

The Course Covers:

  • The basics of credit control and credit management

  • Fundamental credit and debt terminology 

  • Becoming efficient in credit and debt management

  • Deep credit control insights and sales ledger tips


Course Modules:

To start the online course, scroll down

This course is FREE, and no registration is required. It is perfect for beginners!

Our Online Course for Credit Control & Management

Credit Control Course

Part 1: Credit Control Basics

Module overview:

  • Course Outline

  • Course Aim

  • What is credit control?

  • Why offer credit?

What is credit control?

Definition: Credit control is the strategy used by a business to offer and manage customer debt, i.e. supervising the sales ledger. It is the term used to denote the policies, procedures, processes, and strategies employed by a company, business, or other entity to manage the credit it offers to its customers. Credit Management and Credit Control are interchangeable terms and often mean the same thing. 

Not all businesses deal with an instant exchange of cash for their goods or services (cash sales). Instead, goods and services are often provided on credit (credit sales), meaning customers are invoiced for goods and services and pay later. 

Why offer credit to customers?

There are several benefits to offering credit to customers. Offering credit can:

  • Attract a more extensive clientele 

  • Increase sales

  • Strengthen customer relations

  • Improve business logistics

  • Help a business be competitive

Credit Management Course

Part 2: Approving Credit

Module overview:

  • Credit applications

  • Trade references 

  • Credit checks

  • Credit limits

Credit Applications

Prospective credit customers complete a credit application.

Credit applications help a business evaluate whether a client should be offered credit or not, the amount of credit offered, and potential risks. 

Credit applications are helpful for several reasons other reasons:

  • They provide a business with the direct contact details of their prospective client. 

  • They provide references that are checked to ensure the prospective client has been financially trustworthy and responsible.

  • The information on the application allows a business to perform a credit check. 

  • The application is a document that can be useful if legal proceedings are ever initiated.

A business customer completes a credit application. The application asks for the following details:

  • Customer name and address

  • Customer contact details

  • Trade references

  • Customer signature and date

You can download an example credit application form below (Word and PDF):

Credit Limits

Definition: A credit limit is the maximum amount of debt (credit) a business offers a client. Once the limit is reached, the customer cannot purchase further goods or services on credit. This is called putting an account on hold or stop. Buying on credit is possible only when sufficient credit is available again through payment.

After a credit application has been completed, reviewed, checked, and approved, a credit limit should be agreed upon for the customer's credit account. 

Credit limits are set based on the following:


  • The recommendation of credit check software

  • The expected turnover from the customer

  • How much risk a business is willing to take, i.e. how much credit they are willing to offer. 

Credit Policies

Part 3: Credit Control Procedures & Policies

Module overview:

  • Credit policies

  • Credit procedures

  • Various tips and advice

Credit Policies & Procedures

A company should have several well-planned credit control policies and procedures to ensure credit is provided and managed efficiently.

These should include:

  • All customers complete and submit credit applications.

  • All customers receiving an agreed credit limit

  • A monthly review of customer account balances and credit limits

  • A monthly review of outstanding and overdue invoices

  • Regularly raising and sending sales invoices. 

  • Regularly chasing customer debt through email, post, and phone.

  • Rules, policies and procedures for pursuing legal action against a customer who hasn't stuck within their payment terms

There is a template below for a credit limit approval letter. There are also other helpful credit management templates. 

Use Sage to manage your company's sales ledger: invoicing, debt management, statements, and more

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Learn bookkeeping and accounting for limited companies

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