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- Classification of Risk; Customer Risk Score
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- Code of Ethics
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- Customer Purchase Orders, Errors on POs and their Impact on Collections
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- Unearned Discounts; Unearned Cash Discounts; Cash Discounts
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- Internet as a Source of Credit Information
- Late Charges
- Minimum First Order Without Credit Investigation
- New Account Checklist
- Non-Disclosure Agreement
- Open Account Sales; Open Account Terms; Extension of Credit on Open Account Terms
- Order Approval; Order Hold; Credit Reviews; Pending Order Review
- Order Controls / Order Approval
- Pro Forma Invoices
- Requesting Financial Information from Customers
- Restrictive Endorsements
- Returned Checks
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- Root Cause Analysis of Past Due Balances
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- Security Agreements; Secured Debts
- Seller's Invoice
- Terms and Conditions
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- Prox Terms
- Terms of Sale: Examples
- Types of Credit: Consumer Credit; Bank Credit; Commercial Credit; B2B; Business to Business
- Written Credit Policy Manual
- Handling Post Audit Claims More Effectively; Post Audit Claims
- Do's and Don'ts of Business to Business Debt Collection, Debt Collection Practices
- Bad Debt Reserves
- Advantages and Disadvantages of Purchasing Credit Insurance
- A Letter of Introduction
- Addressing Chronic Slow Pay Customers
- More about Cash Forecasting
- Streamlining Order Processing
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- International Credit
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- Career Management, and Job Change
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- Generating Effective Credit Correspondence
- Exporting
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Prox Terms
Prox terms are not well understood, but can be explained quickly. Prox means next. For example, you might see terms of 20th Prox. It means the invoice billed in one month will be due on the 20th of the following month. In other words, the next 20th of the month. So, all invoices generated in January are due February 20th.
What about Prox terms with a cutoff such as Net 20th Prox with a 15th cutoff? This means that all invoices in a given month invoiced by the 15th are due the 20th of the following month. Anything invoiced after the 15th would be due not in the following month, but the month after that.
Example: An invoice dated January 14th would be due February 20th. An invoice generated on January 16st would be due March 20th.
© 2011. Michael C. Dennis. All Rights Reserved. Michael is the author of "Credit and Collection Handbook."