Businesses,in deciding to extend credit to new customers,try to reduce defaults by:

Question

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Businesses can reduce defaults on credit by using a combination of methods, including determining the probability of non-payment, gathering independent credit checks, and determining if extending credit is profitable. By using these methods together, businesses can better assess the risk of extending credit to new customers and make informed decisions about whether or not to do so.

Businesses,in Deciding to Extend Credit to New Customers,try to Reduce