Customer credit check is a control plan that ensures that the organization protects its resources by dealing only with customers who have demonstrated an ability to satisfy their liabilities.

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Customer credit check is a control plan aimed at mitigating the financial risks associated with bad debts and delinquent accounts. By conducting credit checks, the organization can evaluate a potential customer's creditworthiness, payment history, and financial stability to determine whether to extend credit or not. This helps the organization to avoid dealing with customers who have a history of defaulting on their obligations or are deemed high-risk, which can lead to financial losses, cash flow problems, and reputational damage. Thus, a customer credit check is an effective risk management tool for protecting the organization's resources and ensuring financial stability.

Customer Credit Check Is a Control Plan That Ensures That