What Is A Credit Voucher?

A credit voucher is a form of payment that can be given in the absence of cash. It can come in many forms and is common throughout business

• Why use a credit voucher?

A company that has cash flow problems is likely to use a credit voucher. This can come in various forms, it can have a straight cash value or have an additional value in terms of goods on offer from one company to another. In most situations it will have a straight cash value and be used between two companies that regularly do business with each other.

Another use of a credit voucher is from shops where a customer wishes to return a purchase. Consumer law varies from country to country, in most nations a customer is entitled to a full cash refund but some companies will issue a credit voucher which means that the same amount of money must be spent in their store.

• What does a credit voucher look like?

A credit voucher is likely to be fairly informal and could consist of a signed or stamped note on company paper. Since they aren't in regular use a company is unlikely to get a batch of credit notes printed off. Most businesses expect to deal in cash of some sort, most likely bank transfers, with a credit voucher likely to be produced only after negotiations in the absence of a standard form of payment.

• What is their validity?

The credit voucher will have been produced in trust between two parties and will cover some general grounds such as amount, date issued and maybe how long it is valid for. As it has been produced by negotiations between two parties it's validity will have been discussed before being issued.