Short term financing

Hello sir,
What factors should be taken into account when extending credit to customers????

My thoughts:
-credit risk : you have to define the amount of risk your firm is willing to accept.
-credit term: you have to decide how much credit you are willing to extend, and how long can you afford to wait for payment.
– credit application- determine creditworthiness.
ETC
I don’t know whether I’m right or wrong.