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Credit File

The credit department should have a credit file for every customer (whether the customer is sold on "open" credit terms, letter of credit, or any other payment terms). It will contain all the relevant pieces of information pertaining to its credit investigation-documents, reports, correspondence, notes, and summaries of telephone conversations. Each piece of information should be dated. The astute manager will have a checklist for each credit file to make sure all the information needed to make a credit decision is available. It will include such crucial factors as Recommended Payment Terms and Days Granted, Recommended Credit Limit, financial information, trade payment data.

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