Buyer’s Checklist for Customer Credit and Billing Management

💳 Streamlining Credit = Strengthening Cash Flow

In the building materials industry, it’s common to offer contractors and trade professionals net terms. But extending credit is also a risk—if poorly managed, it leads to delayed payments, strained vendor relationships, and cash flow challenges.

This buyer’s checklist gives your team a framework to establish smarter customer credit and billing management, powered by your ERP.

🔍 Pre-Approval Essentials

Before offering terms, confirm:

✅ Business registration and tax ID

✅ Trade references or credit scores

✅ Average monthly purchasing estimates

✅ Payment term request (e.g., Net 30, Net 45)

ERP Tip: Store all documentation and approvals in customer profiles to ensure compliance and historical tracking.

🧾 Setting Up Credit Limits

Set limits per customer based on purchasing history or credit reports.

Define flags for overdue balances.

Use ERP automation to hold or alert sales teams when customers exceed their limit.

🧮 Smart Billing Practices

Your ERP should:

Auto-generate invoices upon fulfillment or delivery.

Sync invoices with delivery confirmations or signed PODs.

Send out digital invoices with click-to-pay links.

Offer early payment discounts and track their usage.

📬 Collections and Follow-Ups

Set your ERP to:

Trigger reminders at 3, 7, and 15 days overdue.

Route accounts to collections after a certain threshold.

Show live dashboards of open vs. overdue invoices per customer.

Internal Use: Have your AR team work directly within the ERP to log calls, notes, or payment plans.

📊 Credit Monitoring KPIs

Monitor:

Days Sales Outstanding (DSO)

Percentage of on-time payments

Overdue accounts by value

Customer credit utilization

These KPIs can be visualized in your ERP for weekly finance meetings.

Want to control credit while boosting customer satisfaction? Let us show you how our ERP empowers smart credit decisions and smooth billing operations. Contact us today.