Augusta
VIP Contributor
No man is an island as such we depend on people for growth. If you owned a business you would be confronted with people wanting to buy on credit, which by the way it's a good way of making more sales.
But the issue is always the need to ascertain that such customers are credit worthy. Well, there are the 5 C's that you can use to ascertain this. These 5Cs are :
Capacity. You need to assess the abilities of the customer to pay your debt
Character: Assess the character of the person involved. How has the previous transactions with him or her been
Capital: Assess the customer books of accounts to know how much you can give out
Collateral: What's the collateral presented and does it worth your goods
Conditions; the condition the customer in should help you know how credit worthy the person will be.
What do you think?
But the issue is always the need to ascertain that such customers are credit worthy. Well, there are the 5 C's that you can use to ascertain this. These 5Cs are :
Capacity. You need to assess the abilities of the customer to pay your debt
Character: Assess the character of the person involved. How has the previous transactions with him or her been
Capital: Assess the customer books of accounts to know how much you can give out
Collateral: What's the collateral presented and does it worth your goods
Conditions; the condition the customer in should help you know how credit worthy the person will be.
What do you think?