Credit and Collection Policies Sample Credit Policy All advertisements will be paid in advance unless credit has been established with the newspaper before ad placement and the account is in good standing. To apply for credit, submit a completed credit application to the business ofﬁce of the newspaper 14 days before the ﬁrst ad placement. The newspaper reserves the right to cancel credit privileges at any time. Accounts more then 90 days in arrears may not place advertisements until the balance is paid in full. Finance charges may be applied to past due amounts. Any accounts turned over to credit collections will be liable for all applicable fees.
Business Categories not Typically Granted Credit Privileges • • • • • • • •
Bars Nightclubs Hair salons Nail salons Tanning salons Political advertisements Restaurants Student organizations
Credit and Collection Policies Collections When an account is past due, collection procedures will be started. A notation of “This balance includes a past due amount. Your prompt attention is appreciated” on the current invoice is your ﬁrst step. From there, initiate phone contact. At ﬁrst, a gentle reminder may be all that’s necessary – “I haven’t received your payment for last month, and I wanted to be sure you got your invoice and tearsheets. When can I expect your check?” Keep very good notes when you speak to delinquent clients! If “the check is in the mail” on the 1st, remind them on the 7th that they said the check was sent on the 1st. When a client realizes that you are keeping track of what they say, you are likely to get a more immediate response. If you are referred to another department, be sure to get the contact’s name and extension or number. If your newspaper charges interest on delinquent balances, that should get the payment process moving. When an account has not responded to collection efforts for 90 days or more, some schools turn the amount over to a collection agency. Collection agencies retain a portion of the amount collected and charge various collection fees.
Credit and Collection Policies
The Daily Toreador, Texas Tech University