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    Determining a Company's Credit Policy

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    How does a company determine its credit policy?

    © BrainMass Inc. brainmass.com October 2, 2020, 1:14 am ad1c9bdddf

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    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.