Credit policies are established to approve customers to purchase on account and terms are established to let customers know when a payment is due and whether there's a discount if they pay early.

• What factors are important to consider when setting credit terms for your customers?
• What happens if the credit policy is strict?
• What happens if the credit policy is too liberal?
• How would either credit policy work for a business you own?

Answer rating: 100% (QA)

Factors to Consider When Setting Credit Terms Customer Creditworthiness This involves assessing the ... View the full answer