Credit standards are used by business to decide which customers should receive credit and how much credit they should receive. Setting
credit standards requires businesses to assess the customer's credit "worthiness" or credit "quality". Traditionally, assessing
creditworthiness involves considering the five "Cs" of credit.
Below is a brief overview of what they mean and how to use them.
Character refers to the probability that the customer will honor an obligation. Many credit professionals insist that ...