What do you mean by credit policy, Financial Management

Q. What do you mean by Credit policy?

Credit policy: the credit policy of the concern in its dealing with the debtors and the creditors influencly consider the requirement of the working capital a concern who purchase its equipment on credit and sales his products in cash require the lesser amount of the working capital requirement. on the other hand a concern purchase its p the funds products in cash and sell them in the credit the concern need the large amount of the working capital as very huge of amount of the funds Are bound in the debtors or bills receivable

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