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Credit Policy Planning in Medium Scale Business

Author

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  • Herdinata Christian

    (International Business Management Program, Ciputra University, Jawa Timur, Indonesia)

Abstract

In dealing with the factors affecting credit policy, a management should consider external and internal information before creating a policy. Internal factors include the structure and the amount of available bank assets and liabilities, and the type, state, and composition of available banking facilities and personnels. Meanwhile, external factors include the atmosphere of the business world in general and banking sector in particular, bank location, and others. The factors that need to be considered in credit policy cannot be separated from the problems that exist in banking activities. Since the factors affecting credit policy act as a guideline which influences credit management, it is important to analyze these factors. This research maps out some important factors in credit management and recommends certain practical steps that can be taken in credit management.

Suggested Citation

  • Herdinata Christian, 2017. "Credit Policy Planning in Medium Scale Business," Mediterranean Journal of Social Sciences, Sciendo, vol. 8(1), pages 14-19, January.
    • Handle: RePEc:vrs:mjsosc:v:8:y:2017:i:1:p:14-19:n:8
    DOI: 10.5901/mjss.2017.v8n1p14
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