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Heraklion co.- credit limit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Heraklion co.- credit limit

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by AvatarKim Smith.
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  • August 17, 2021 at 6:26 am #631791
    AvatarNoah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    New customers should complete a credit application whichshould be checked through a credit agency with a credit limitset. Once authorised by the sales director, the limit should be entered into the system by a credit controller.

    maam would the credit limit also be set by the external credit rating agency which is responsible for reviewing the credit worthiness of customer or the sales staff would do that? because ether above statement doesn’t give clarity on that.

    August 17, 2021 at 7:08 am #631804
    AvatarKim Smith
    Keymaster
    • Topics: 138
    • Replies: 8468
    • ☆☆☆☆☆

    It’s the supplying company that sets a credit limit for each customer – it may have a company policy of a “cap” (i.e. maximum amount) on credit it will allow to any one customer.

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