What is the method to determine / set the credit limit for
the customer ?
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Answer Posted / manish.panchal
You can determine credit limit of customer depending upon
previous transaction you had with. Need to consider two
factors. your Payment terms and the day you received your
payment.
If you are dealing for the first time you need to check
market reputation or goodwill of customer. If possible get
MCDB ( Master of Customer's Data Base ) from marketing people.
This are the factors through which you could surely derive
limit for customer.
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