Unit 15 - help

ktjade

Hi,

Sitting my unit 15 skills test, one question I have come across I cannot find an answer to anywhere in my books (i'm home study):

'What are 3 factors to consider when granting credit and explain these factors.'

I was wondering if anyone could help with this, does it mean internal and external references etc. or customers status and risk level?

Any help would be much appreciated.

Thanks.
xx

sdv

ktjade wrote: »

'What are 3 factors to consider when granting credit and explain these factors.'

xx

There are seven. CAMPARI

Character of the customer
Ability to pay
Margin
Purpose of borrowing
Amount of borrowing
Repayment terms
Insurance against non payment

Take your pick. But I would say the 3 main ones would be

Ability to pay (link it to gross/net profit margin, and payable days)
Amount of Credit
Terms of Credit


I am sure you can easily explain the above factors

ktjade

Thank you so much - that is a great help