Credit Selection
To compete in today's economy most firms extend credit to their current customers and use credit as an incentive to attract new customers
Accounts receivable represent about as 37% of the average manufacturer's current assets and 16% of total assets, making the management of credit an extremely important activity
Accounts receivable are controlled through the firm's Credit Policy, which addresses the issues of credit selection, credit standards, and credit terms
Collection policy is another issue that must be addressed by any firm extending credit to customers
Credit Selection is the decision of whether to extend credit to a particular customer and, if so, how much
- 1994, HarperCollins Publishers