- Reliability- check if the customer is an honest per son who can
honour the debt as
agreed/character
-Ability to pay – find out if the customer is an honest per son
who can honour credit.
-Capital- check whether the customer has assets that can cover all
his liabilities
-Collateral- checks whether the customer has resources to repay
the credit to make sure that credit is covered.
-Prevailing economic conditions-consider if the status of the
economic climate is healthy to warrant giving the credit
-Credit period
-Amount of stock available
Githiari answered the question on September 22, 2017 at 20:26
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