1
Introduction
1.1
Objective and scope
1.2
Benefits of standardizing prepayment guidelines
1.3
What is a prepayment option?
1.4
Key factors driving prepayment
1.5
Key objectives of prepayment
1.6
Prepayment principles
1.7
Core activities and key responsibilities
1.8
Measurable goals
2
Prepayment guidelines
2.1
A well-defined credit policy
2.2
Policy on credit extension
2.3
Various prepayment thresholds
2.4
Prepayment options
2.5
Background workings for daily monitoring
2.6
Effective communication system
2.7
Internal decision making
2.8
Continuous review of prepayment customers
2.9
Contents of the master agreement
2.10
Advantages of prepayment option
2.11
Disadvantages of prepayment option
2.12
Best practices for accounts receivable (AR), credit and collections
management
2.13
Other considerations
3
A quick-step guide on prepayment