Impact and strategies of credit in companies

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Corporate lending is becoming increasingly popular among businesses. This is because it can increase sales and improve business relationships. However, it also involves managing a credit portfolio and the financial risk that this represents.

If part of the portfolio is late in its payments, or a high percentage becomes uncollectible debt, this would be detrimental to the company's finances. That is why it is crucial to establish a credit policy that allows determining which individuals are eligible for this benefit, and under what conditions.

In this post we tell you more about the importance of credit in buy targeted email list and how to create credit policies with risk tolerance.

What will you find in this text?

Importance of giving credit to customers to generate corporate profits

How to align credit decisions with risk tolerance

1. Evaluate your credit capacity

2. Set credit limits

3. Determine the type of credit policy to be offered

4. Monitor the company's risk tolerance

Collection policies are also important

Importance of giving credit to customers to generate corporate profits
Granting credit to customers is a decision that should not be taken lightly, as it involves certain risks. However, when handled properly, it can be a highly effective strategy to improve the company's competitiveness in the market. In an environment with high supply, it is crucial to find ways to differentiate yourself and convince the customer to choose us. In this sense, the credit option offers an attractive advantage: the possibility of obtaining the product immediately and paying for it in the future, even in comfortable installments.

This practice is beneficial when a well-defined strategy is followed from the beginning of the process. By offering credit, the customer tends to downplay the price and focus more on the acquisition of the product. As a result, an increase in the average purchase ticket and overall sales is likely to be observed. In addition, by providing a tangible “benefit,” the relationship with our company is strengthened, generating loyalty and enhancing customer satisfaction.

How to align credit decisions with risk tolerance
Basically, this is achieved by creating strategic credit policies. These must be designed to adequately manage the risks associated with granting credit. Some factors that must be considered when granting credit to clients are: