See the importance of having a credit policy in your company

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Companies that grant credit are always exposed to credit risk , after all, there is a possibility that the customer will not fulfill part of the agreement. At this point, the institution finds itself in a very complicated situation, since they need to make a profit and the lack of feedback from the consumer means that all financial planning will be affected.

To be more careful, some measures, such as a good credit policy, are benin phone number list precisely to protect the company against all the dangers that loans and financing can bring. Therefore, below, we will talk more about this measure and how it can be done. Understand!

What is credit policy?
It is the set of guidelines used as a guide for credit approval. These standards are designed in such a way that it is possible for both the credit company to make a profit and for the customer to have their request met.

It is important to understand that there is no exact standard regarding these criteria, so each company can define what is most appropriate for granting loans or financing.

Why is it important?
Every operation in a company needs guidelines to be carried out correctly. After all, an organization is made up of different processes that are transformed into products and services. For everything to work properly, it is essential that the standards are followed with excellence, but first, they need to be defined.

In the case of a concession company, the credit policy is the guarantee to carry out this process safely and bring the expected results. Among the benefits it offers, considering the risks of making a sale on credit, we should highlight that:

reduces default ;
minimizes operating costs;
brings more security to the company;
avoids losses.