Credit and Collection Policies Clause Samples

The Credit and Collection Policies clause defines the standards and procedures a party must follow when extending credit and collecting payments from customers or clients. Typically, this clause outlines acceptable credit terms, invoicing practices, and steps to be taken in the event of late or missed payments, such as sending reminders or applying late fees. Its core function is to ensure consistent and fair management of credit and collections, reducing the risk of non-payment and providing clear expectations for both parties.