Decide who gets credit
Credit is a decision, not a habit. Offer it to customers you know, with a clear reason: regular trade customers, companies that pay by cheque or transfer, long-standing neighbours. Write down each account's terms, for example payment within 30 days of the invoice, and the most you're comfortable with them owing at once.
Record every sale on account
Every credit sale needs an invoice against the customer's account, not a note in a notebook. When it's recorded at the till, the customer's balance updates immediately and the invoice is there if they ever question it.
Watch the age, not just the balance
AED 5,000 owed from last week is a healthy account. AED 5,000 owed for three months is a problem. Ageing groups what each customer owes by how long each invoice has been waiting.
| Customer | 0–30 days | 31–60 days | 61–90 days | Over 90 |
|---|---|---|---|---|
| Sample Contracting | 539.00 | 240.00 | — | — |
| Villa 14 | 182.50 | — | — | — |
| Sample Landscaping | — | 1,100.00 | 650.00 | 320.00 |
Send statements on a schedule
A monthly statement lists every invoice, payment and credit and ends with the balance by age. Sent regularly, it prompts payment without a phone call and settles disagreements early.
Apply payments clearly
When a customer pays part of what they owe, apply it to the oldest invoices first unless they tell you it's for specific invoices. Give a receipt with a number for every payment.
Post-dated cheques
Many UAE trade customers pay with post-dated cheques. Record each cheque with its number, bank and date when you receive it, deposit it on the date, and don't treat the debt as settled until the bank clears it. If a cheque bounces, the amount goes back on the account and the conversation starts again.
A gentle follow-up routine
- Weekly: review ageing; note anything past its terms.
- At 30 days past terms: a friendly reminder with the statement attached.
- At 60 days: a call, and pause further credit until it's settled.
- Beyond that: agree a payment plan in writing, or take advice.
This guide is general information about running customer accounts, not legal or financial advice.