Explore BrainMass

Explore BrainMass

    Determining a Company's Credit Policy

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How does a company determine its credit policy?

    © BrainMass Inc. brainmass.com March 4, 2021, 10:53 pm ad1c9bdddf

    Solution Preview

    A credit policy is a guideline that a company uses to determine which customers are sold items on open accounts, the payment terms, the limits for outstanding accounts and how to recover delinquent accounts (www.entrepreneur.com). A company needs to determine just how much credit each customer will receive and under what circumstances. The credit policy should be based on the type of company giving the credit, ...

    Solution Summary

    Solution explains how a company often determines its credit policy.