Practical worksheet

Customer credit checklist

Decide how much time and credit to offer a business customer before unpaid invoices grow.

Last reviewed 2 October 2026

Before you start

Use commercially appropriate checks with consent where required. Do not treat this as legal or credit-reporting advice.

A sale paid months later can strain payroll and supplier payments today.

Use before offering terms to a new customer and when increasing an existing limit.

It shows your exposure to one customer and the actions needed before you supply more on credit.

Each prompt explains what to enter. The example is a guide, not a target for your business.

01. Customer and order

Who is the legal customer, what is being supplied and what is the estimated monthly value?

Registered company; expected orders $8,000 a month.

02. Terms and limit

State proposed payment terms, maximum unpaid balance and who can approve exceptions.

14-day terms; $10,000 limit; owner approves any increase.

03. Checks and references

Record the checks that fit the size of the exposure and any unresolved questions.

Confirm ABN and trade reference; obtain consent before any formal credit check.

04. Collections plan

Decide who sends invoices and reminders, and when supply is paused or escalated.

Reminder on due date; manager review at 14 days overdue.

05. Exposure review

Estimate the cash effect if the customer pays late or stops buying.

Two unpaid months = $16,000 exposure, larger than one payroll cycle.

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This worksheet is general planning information. Ask a qualified accountant, tax agent or lawyer where your decision needs specialist advice.