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Underwriting Credit Authorities |
 Introduction The following table is based on the 'minimum' level of authority required for underwriting credit sales. If any of the four criteria are not met as a minimum, the next level up must authorize the credit sale. ' Level' can be any authority level that fits your business, i.e. Level 1 = Managing Director
Level 2 = Finance Director
Level 3 = Credit Manager
Level 4 = Administration Staff
'Bank Reference' can be read as follows: * SPT = 'should prove trustworthy'
* SPG = 'should prove good' SPG is a better reply to a bank reference than SPT. Where as, 'undoubted' is the best reply, and 'cannot speak' is the worst.
'Credit Agency Score' The scores can be marked out of a 100: 80/100 would indicate a safe risk: 60/100 is not so safe: 20/100 would probably indicate that the company is unlikely to survive (or the company may be a new business with little capital). 'Risk Category' It is usually sufficient to use three categories to rate your client/customer: * Risk Grade 'A' = Low Risk
* Risk Grade 'B' = Average/Normal Risk
* Risk Grade 'C' = High/Above Average Risk Underwriting Credit Table | | Over £10k | Up to £7.5k | Up to £5k | Up to £2k | Level
| 1
| 1
| 2
| 2
| 3
| 3
| 4
| Bank Reference
| Any
| Any
| SPG
| SPT
| SPG
| SPT
| SPG
| Credit Agency Score
| Any
| Any
| 60
| 60
| 80
| 75
| 85
| Risk category
| Any
| Any
| B
| C
| B
| B
| A
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