Here is a scenario: A customer that has a credit limit of $10,000
has been paying 30 to 60 slow on $1,000 to $2,000 a month in purchases.
They now have a $15,000 order shipped and built. My immediate reaction
was No Way. What do you think?
Answer: Our decision is
the same as your decision - No Way. Unfortunately, we do not have enough
information to make a fully informed credit decision. For example, if
this were a 5A1 rated and publicly traded company, our final decision
could be different. If we knew the reason the customer was paying 30
to 60 slow, and it was legitimate [such as they were not paying because
we were sending invoices to the wrong bill to address] then our answer
might be different. As a general statement, if a customer such as this
one cannot pay $1,000 any faster than 30 slow, there is little reason
to suppose they will pay more promptly if the balance due increases to
$15,000, and therefore there is no reason to offer the large credit limit. |