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How Much Credit Should You Grant Your Customers? (DR)
One of the most critical tasks for credit managers is to determine how much credit to provide to their customers. Many would say it simply takes a review of a credit report to make that determination based on what other creditors provide to the customers and how those customers manage their available and past credit lines. Others choose to focus on financial clues like profitability, growth, or perhaps a percentage of total assets or net worth of the company. However, these aren’t enough in today’s risk environment to keep track of credit lines that makes sense for your portfolio. There are simple, critical elements and processes often overlooked by credit managers in the evaluation process that can create confident, accurate credit line extensions. We will cover: --Evaluate traditional ways to quantify trade credit lines offered --Incorporate your risk tolerance and credit policy into each credit decision --Assess your portfolio for credit line extension and changes made to credit lines --Learn critical elements to access to consistently and accurately determine unsecured credit lines
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