Credit Terms Advisor
The payment terms you offer a customer should reflect the risk they represent — their industry, invoice size, and how well you know them. Answer five questions to get a tailored recommendation for your situation.
How to read the result
The recommendation is based on a combination of industry risk profile, invoice size, relationship history, and whether you have the protective documentation in place (a signed credit application and, where appropriate, a personal guarantee). The flags at the bottom highlight specific gaps you should address before extending credit.
The tool is designed for common Australian B2B scenarios. It does not account for every possible situation — use it as a starting point, not a substitute for credit management judgement.
The foundations of good credit terms
Whatever terms you agree, they're only enforceable if they're documented. The three non-negotiables are:
- Signed credit application — confirms the customer's identity, structure, and agreement to your terms.
- Clear terms of trade — specifying the payment due date, interest rate on overdue balances, and your right to recover collection costs.
- Personal guarantee (for significant exposures) — makes a director personally liable, which is particularly important where the trading entity is a company that could be wound up.
Use our commercial credit application template to ensure you're capturing everything you need.
If you're already dealing with a customer who isn't paying: refer the debt to Merion — commission-only, no upfront cost.
This is general guidance only — not legal or financial advice. Credit terms should be reviewed by your legal adviser to ensure they are appropriate for your business and enforceable in your jurisdiction.
Good credit terms prevent bad debts.
Use our free credit application template, or let Merion help you recover a debt that's already gone bad.