Granting credit

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Shell B
Shell B Registered Posts: 95 Regular contributor ⭐
in AAT Level 4 (Level 8 in Scotland)
Hello

just revising for the 2nd section on credit management and i keep coming across this question and i my mind keeps going blank.

When refusing a company credit what suggestions can you give to help them improve there chances of credit being allowed in the future??????

Thanks for your help in advance

Shell B

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  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
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    Put in the context of your personal credit.

    How might you obtain credit in future if you were turned down?

    What sorts of things might lead to you (or a company) having a credit application refused?

    So look at those things, and then say what could turn a refusal into an acceptance.
    Sandy
    sandy@sandyhood.com
    www.sandyhood.com
  • Paisley
    Paisley Registered Posts: 93 Regular contributor ⭐
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    Hi

    Some useful advice in the Osborne book:

    Sending a diplomatic and tactful letter explaining the situation.

    Offering to trade on a cash basis for now, and to review the situation again in six months time when their latest accounts could be viewed.

    Offering half-way house credit - shorter credit periods than 30 days or by offering payment using a percentage of cash and a percentage of credit.

    Good luck with your assessment. I have this one soon too.

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