This refers to the required financial strength of acceptable credit customers.

Where the midlevel credit manager reports only to the division general manager and has complete authority in all credit and collection matters without reference to headquarters. -

Accountable for the entire credit granting process, including the consistent application of a credit policy, periodic credit reviews of existing customers, and the assessment of the creditworthiness of potential customers, with the goal of optimizing the mix of company sales and bad debt losses.

It is set forth in writing and usually has the support and approval of senior management.

Taking into account the risk involved and liaising closely with sale

It is defined as your company's action plan to guard against late payments or defaults by your customers.

This methodology allows lenders to use credit profile characteristics to charge borrowers interest rates that vary by credit quality

This refers to the process borrowers are subjected to for them to be eligible for funding, or to pay for products within a specified period. -

This activity includes performing well the process of classifying and setting up credit risk provisions as well as regulations on prudential ratios in credit activities, establishing internal scoring and ranking customers system on the basis of regular monitoring of customer performance with early warning indicators including financial analysis indicators and related information.

It is a guiding principle used to establish direction for the credit function in an organization in order to achieve the objectives of minimizing risk and maximizing profitability, while maintaining a competitive advantage in the marketplace

It is the movement of data electronically from one computer to another in a structured, process able format. It has revolutionized the management of information and cash flow.

It involves estimating the probability of loss resulting from a borrower's failure to repay a loan or debt. Traditionally, it refers to the risk that the lender may not be able to receive the principal and interest.

It is a penalty charged by credit card companies when cardholders' purchase exceeds their credit limit

Ensuring that agreed terms are adhered to, all high-risk customers are kept under control, and action is taken promptly to resolve any queries or disputes.

When a receivable is considered not collectible, it is directly expensed in the Income Statement.

It is a receivable that is now irrecoverable from that person who was supposed to pay the same.-

This is a promise in an indenture, or any other formal debt agreement, that certain activities will or will not be carried out or that certain thresholds will be met. It is often put in place by lenders to protect themselves from borrowers defaulting on their obligations due to financial actions detrimental to themselves or the business

Ensuring that the customer master files is up-to-date and accurate, and that payments and other adjustments have been applied promptly and accurately.

This refers to the management of the probability of the Loss that a company may suffer if any of its borrower defaults in their repayment and is done by implementing various risk control strategies in the company to mitigate the same.

. It is sometimes referred as unique risk. It is particularly tied to the business specifics and some to its immediate competitors.

It is the development plan in a defined period of a bank. The operational scheme reflects the bank's willingness to take risks. Through this, credit process policies are in place to ensure that credit operations achieve positive results as set out in the plan. -

This ensures that the sales extended on credit are going to credit worthy customers who will pay in a timely manner. It is at its best arrangement if it is an independent unit under the finance director.-

It is gauged through the ability return of checks due to insufficiency of funds.

Which of the following is not a question that the company must answer in developing credit policy: