In many small firms the Policies and Procedures (PP) manual functions as the strategic link between the business’ vision and its day-to-day activities. This document will construct and define roles and responsibilities while allowing operations to proceed at their smoothest.
If you were in the money lending business would you hand over money to people without arranging a repayment contract with them? It doesn’t sound too smart, but most businesses are in the money lending business in just this way. In effect, by offering credit to your customers, you are providing them with a loan.