Factors to consider when granting credit to customers include:

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All of the above factors should be considered when granting credit to customers. The variable costs of the products on credit will impact the profitability of extending credit. The credit limit being offered to the customer should be carefully determined based on their creditworthiness and ability to repay. In addition, evaluating the customer's ability to repay is critical to avoid bad debts and minimize credit risk.

Factors to Consider When Granting Credit to Customers Include