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Avon Credit Control

Written by Gail Reynolds on October 29, 2010
Changes to Credit Policy for new Representatives

Did you know that currently a third of all orders placed are held for various reasons?

Many of these are new Representatives' orders but…we have a plan to help reduce this number whilst also keeping debt to a minimum.

What do you have to do differently? Nothing - although here you will find a reminder of how you can support credit management.

We are making changes to the system that will reduce the number of held orders referred to Credit Control for LOA 1-6. This will both speed up order processing and improve order management. Each independent Avon Representative will have their own individual order limit based on the credit score calculated on their Representative Agreement (we are working towards supplying you with a guide). Please ensure you check SMA for the order level given to your new Representative and let them know what it is. Orders will still be reviewed to ensure there are none already held in the system, that there are no outstanding balances or unusual behaviour in regards account activity.

If a Representative places an order above their order limit they will be required to pay a deposit or reduce their order. This deposit can be paid using a debit card, which clears the account more quickly.

These changes are effective immediately so Credit Control will now be asking for deposits from the relevant Representatives and any new Representatives deemed a higher debt risk will be asked to pay for their LOA 1 and 2 orders upfront.

This change is stage one of our ongoing project to improve our credit process and reduce debt and we hope you agree that we are taking a step in the right direction.

Whilst testing the new system we saw a reduction of the number of orders being held by one third which is extremely positive. Credit Control will be monitoring the process and welcome your feedback. If you have any questions about this, please contact Credit Control on 0333 234 5555. If you would like to obtain a credit limit please call the Credit scoring line on 0333 234 0222.

Opening Times: Mon – Thurs 8.00am – 4.15pm and Fri 8.00am – 3.15pm

Please find below the answers to some questions that have been raised:

Q. What changes have been made to SMA? Does SMA still just show the first order level limit?
A. There have been no changes made to SMA – the level shown remains at net level, not brochure price level. Therefore if you appoint a Representative who is allocated a £300 order limit on SMA they can place a brochure order of £400. Don't forget this must include the cost of any brochures, demonstration products and the appointment administration fee.SMA shows just the first order level limit only.

Q. What does 'higher debt risk' mean when referring to Representatives?
A. For individuals whose credit score is calculated at less than 75 we carry out a further credit reference check with Experian to determine whether we accept them as an Independent Avon Representative or not. Due to the high propensity of these people to go to debt, we are asking for their LOA1 and 2 orders to be paid upfront.

Q. Why do those with a credit score of less than 75 not get a credit limit?
A. Historically, these individuals have very low retention rates and one in five of these accounts go to debt. We need to protect Avon and therefore we do not want to allow those with adverse credit histories to become Representatives – this part of the process is unchanged. If these people do become Representatives we will not limit their order level as we require them to pay the full amount before the order is processed and delivered. Please note these are very small numbers, in the 4th Quarter 2009 only 100 people fell into this group across the whole of the UK.

Q. How can I determine the LOA 2 – 6 order level limit for my Representatives?
A. At this stage we are unable to give exact figures past LOA1 for your Representatives as each order level is being given on an individual basis. If you require the order level limit for your Representatives from LOA2 onwards you will need to contact Credit Control. Due to the changes we are currently working through we are closely monitoring the process and will be making some changes as necessary. We want to balance the ability of new Representatives to grow their business against the risk that some will build up large balances which are never paid. Once this piece of work is complete the Credit and Collections department will share the figures.

17 responses to “Avon Credit Control”

  1. Nokuzola Bisani says:

    I ordered things 2 months back through my avon manager and she ordered many things which some I ddn’t order then i returned them back to her since then she hasn’t given me my money coz she said she can’t take them back she will sell them and give me my money to pay.Wat can I do coz now avon is sending me sms that I havn’t paid and she is nowhere to be found.My avon account is 9109342

  2. Gail says:

    I cannot help as you are not part of my team?. Were you recruited in the UK and if so you can contact avon direct from the number on your invoice

  3. Nokuzola Bisani says:

    Nope am from Johannersburg so wat can I do?

  4. Gail says:

    You really need to contact Avon Johannesburg, google them perhaps?.

  5. Hi Gail, Hope you are well. I am rather confused by the above becuase i have just been told by AVON that their first order limit given to reps is brochure price and not net price. I have check SMA to see if it mentions anywhere on their of the credit amount for their first order and it doesnt. Can you please advise if credit control has changed its rules sinse your post.

    Kindest regards


  6. Gail says:

    You as a sales leader will get their Credit limit when you appoint them online
    It is clearly on the form when they have filled out the initial BAR form 🙂

  7. Hi Gail, Thaks for the reply. I dont think I made myself very clear, sorry! I have been told the first order limit given to a new rep is ‘Brochure’ value and not ‘Net’ value which is what is stated above. So if their order limit says £200, I have been told they can only order £200 pounds worth of items and not £250.

    Sam x

  8. Please i need your help, I would like to cancel my order that i made on Tuesday the 13 November 2012. Please tell me how to go about it…
    Thanks in advance..

  9. Gail says:

    Hello Lydia. Did you place your order with a representative or via Avon direct?…The only way around it would be to tell you rep when she turns up with your order you no longer want it, or refuse to take the delivery if it is via Avon direct

  10. ZANDI MLOTYWA says:

    hi i need help to pay for my avon account was handded over to dealflow

  11. Good day…I have placed an order on 17 November 2022 and offers of buy 2 for 92.90 body sprays and buy 3 perfume of 30ml for 229 so the discount has not been made,how do i cancel the order because other products i need them

  12. Carol Vimbai Madzivanyika says:

    Can you please release Mufaro Masawi’s order that you held on credit que

  13. Lerato says:

    Hy i would like my creadit to be increased

  14. Lerato says:

    Hie may u please increase my credit limir

  15. Idah Makhubela says:

    How much do I own

  16. Mercy Nangoma says:

    Please delete for me order number 2024552

  17. Kundai Mukono says:

    Hi can you please release order for Kundai Mukono her account number is 123311368
    . Her order number is 2433195.the amount in the account is R1681 please can you reinstate the account

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