Place the following steps for developing a credit policy in the correct order of process: A: The company decides that it will contact customers by phone if they are late on a payment. B: The company decides that it will not require customers to undergo a credit check. C: The company decides that it will reward loyal customers with a discount for early payment

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Answer:

C: The company decides that it will reward loyal customers with a discount for early payment.

B: The company decides that it will not require customers to undergo a credit check.

A: The company decides that it will contact customers by phone if they are late on a payment.

Explanation:

One may ask: what is a credit policy? In simple words, a credit policy refers to a document detailing the guidelines of receiving credit and the payment conditions for customers which would also include actions to be been taken for late payments.

We can make this conclusion because an ideal credit policy usually states the benefits of carrying out certain service obligations before other procedures are stated. So, first,

  • the company decides that it will reward loyal customers with a discount for early payment. Next,
  • the company decides that it will not require customers to undergo a credit check, and finally,
  • the company decides that it will contact customers by phone if they are late on a payment.