Enterprise credit policy

Enterprise credit policy improves its overall marketing activity. The problem arises in the fact that credit sales are quite expensive for a small business. The enterprise credit policy may be a critical factor of success for some of them. Economic conditions, product prices, product quality, Inventory turnover, capital costs and enterprise credit policy influence the amount the enterprise receives. All of these effects must be taken into consideration. Decisions taken on approving credits to customers impose specific obligations and the need for serious approach to this aspect of the management.