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What are the four key factors in a firm’s credit policy? How would a relaxed policy...

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Finance

What are the four key factors in a firm’s credit policy? Howwould a relaxed policy differ from a restrictive policy? Giveexamples of how the four factors might differ between the twopolicies. How would the relaxed versus the restrictive policyaffect sales? Profits?

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The four main factors that is important in a firms credit policy are credit period discounts credit standards and collections policy A restrictive policy will aim to put necessary restrictions on the borrower and the    See Answer
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What are the four key factors in a firm’s credit policy? Howwould a relaxed policy differ from a restrictive policy? Giveexamples of how the four factors might differ between the twopolicies. How would the relaxed versus the restrictive policyaffect sales? Profits?

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