I need a credit policy sample for a business plan project.
A credit policy is a blueprint created by a business explaining its policy of extending credit to the consumer. Every business is different therefore credit policies to differ depending upon the product or products being sold. There are several factors that should be considered before any credit policy is implemented, here are some examples:
1. the product demand and cost
2. the liquidity of the business' assets
3. the condition of the cash flow of the business
4. the interest rate that would be charged upon the unpaid balances
5. the impact of requiring a down payment before credit would be extended
6. the federal regulations and guidelines that are to be followed
7. could the business sustain itself without cash payments for products
You can acquire credit policies from any business who offers it to the consumer. Depending upon what kind of business your project is on will determine where you should look for a particular credit policy. In developing your own, match your business project with a real business and use their policy as your guideline in creating the one for your project.
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