Still on COD? Build a reliability record for the next credit review

Supply has resumed, but trust has not caught up

You have worked through the immediate shortage and the supplier is delivering on cash-on-delivery terms. The next question is different: what would convince its accounts team to consider credit again? Another promise to do better is hard to assess. A short, accurate record of what you agreed and what actually happened gives the discussion something concrete.

Ask why the credit terms changed and what evidence the supplier would consider at a future review. Confirm the current terms in writing. Business.gov.au explains that payment terms affect cash flow and should be clear. Forecast on the COD basis until a change is confirmed; a review date is not approval of a credit limit.

Start with one agreed account balance

Compare the supplier statement with invoices, credits, returns and payments in your records. Identify disputed entries separately rather than quietly subtracting them from the amount you intend to pay. Ask the accounts contact to clarify differences. A credit discussion based on two different balances can become an argument before you even reach the future terms.

Keep old arrears separate from new COD orders and confirm how payments are allocated. If the supplier says Tuesday’s transfer reduced arrears, your team must not assume it funded Wednesday’s delivery. Record the allocation alongside the payment reference and order number. This is an account-control step, not a reason to pay a disputed amount without checking it.

Source: Official guidance

Record a small promise and its actual outcome

Create a simple review record with the agreed action, promised date, actual result and evidence reference. For example, record an agreed $1,500 transfer on Tuesday, the bank confirmation and the supplier’s receipt. If receipt is still unconfirmed, mark that accurately. Do not turn an initiated transfer into a claim that the supplier has received cleared funds.

Use the same record for an agreed document or query response, not just money. If you promised to resolve an invoice discrepancy by Friday, note whether you supplied the documents then. The purpose is to make follow-through visible. It is not a credit score, and four completed entries do not guarantee that a supplier will change its policy.

Deal with a missed commitment before presenting the review

If a promise was missed, record it rather than removing it from the summary. Explain what changed and whether the proposed replacement date is supported by the cash forecast. An honest exception with a realistic response is more useful to the discussion than a polished table that hides the difficult week or depends on uncertain customer receipts.

Do not prioritise a supplier payment simply to improve the record if the company may be unable to meet debts when due. Obtain qualified insolvency advice about the wider position. The supplier relationship matters, but the review log is not advice about creditor priority or permission to continue trading regardless of the company’s financial circumstances.

Ask for a limited decision, not the old limit automatically

At the agreed review, present the reconciled balance, commitments record and forecast. Ask what limited change the supplier would consider, such as a smaller credit ceiling or review after another trading period. Model the cash effect before accepting. Record any new terms and their start date; the supplier may refuse or keep COD in place.

Today, choose one supplier already delivering on COD and ask what evidence it needs for the next review. Start the commitments record with the next achievable action. If arrears or forecast gaps affect several suppliers, contact CRP about creditor management with those records. CRP coordinates independent qualified professionals to help assess a realistic plan without promising restored credit.