An Introduction To Business Credit Policies
It’s normal for potential customers to inquire about credit options when purchasing. After all, credit is one of the most popular modes of payment. It’s easy and convenient, and allows consumers to buy pricey items in the absence of cash. And best of all, payment can be made over a period of time. The only drawback is people tend to spend more when using credit. And oftentimes, they pay late, which represents losses for businesses. This is why there is such a thing as a credit policy. Image source: expertbusinessadvice.com A credit policy balances out this system. It allows consumers to buy things they otherwise would not afford at the moment, while making sure the credit granted is within the consumers’ ability to pay. This is why companies have strict standards when it comes to credit standing, and meticulous processes in identifying people who have good credit health. A good credit policy is also fair with its limit on credit, and clear with the terms and condi