Credit Standard

Credit Standard

The sale of goods or services provided to customers carries a risk for the company that causes a loss to the company whether the time of payment or loss in cash.

In general, in practice, the risks faced by companies related to credit sales are as follows

1. Customers are late paying bills to the company, for example past the due date. However, despite being late or halting, customers are still willing and able to pay their bills.

2. On the way the customer does not have the ability to pay according to the agreement so that the credit is really bad, even though the customer is still trying to pay

3. Customers run away so that they cannot be billed at all and are totally stuck

To avoid or minimize the risks faced by the company, before credit sales are given, it is necessary to do a credit analysis of the customer's willingness and ability to pay his obligations.

Credit analysis provided is not much different from loans provided by banks, for example with analysis of 5 of C. With this analysis tool competing companies are not able to see the kamauan and ability of customers before credit sales are given.

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