02 — Capability · BC-250.20
Credit Management
Decide how much credit to extend to each customer and on what terms, so sales can grow without the enterprise quietly becoming its customers' cheapest lender.
- Customer Credit
- Credit Risk
In scope
- Credit assessment and limits
- Credit terms policy
- Credit holds and order release
- Credit insurance and guarantees
Out of scope
- Bank and trading counterparty risk (see BC-230.30)
Realized by · 0
- No product in the catalog yet.
Used in · 2
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 4
- BC-250.20.10Credit AssessmentEvaluate a new or existing customer's ability and willingness to pay from financial, trade and payment history data before credit is extended.
- BC-250.20.20Credit Limits & TermsSet and review the exposure limit and payment terms for each customer, and escalate exceptions to the authority that can accept the risk.
- BC-250.20.30Credit Hold & ReleaseBlock orders that would breach a limit or sit behind overdue balances, and release them quickly once the condition clears or someone with authority decides.
- BC-250.20.40Credit Risk MitigationReduce exposure on larger or riskier accounts through credit insurance, guarantees, letters of credit or deposits.