A policy which seeks to limit the availability and use of credit by individuals and businesses. A restrictive credit policy may be used to slow down economic growth by limiting the amount of money that can be borrowed.
Related information about restrictive credit policy:
- What is restrictive credit policy? definition and meaning
Definition of restrictive credit policy: A policy which seeks to limit the availability and use of credit by individuals and businesses. A restrictive credit policy may be ...
- Encyclopedia of Credit - Credit Decision-Making
If bad debt losses are higher than expected, senior management may insist on a more restrictive credit policy 7. Inventory levels. High levels of inventory tend to ...
- Chapter 19 Cash Conversion, Inventory, and Receivables ...
A restrictive credit policy could cost the firm lost sales, while relaxing standards could lead to an increase in bad debts. Relaxing credit standards generally ...
- 10 Principles to Follow When Establishing Your Credit Policy
If your customers are usually short on funds, do seasonal work, or have other problems that limit them financially it is unrealistic to have a restrictive credit policy.
- Credit Control in Inflation - The CQ Researcher Online
Federal Reserve authorities are thus attempting to give effect to the “more restrictive credit policy” recommended by 220 leading economists in mid- December, ...
- Chapter-V Accounts Receivable Management
Tight or Restrictive Credit Policy– Firms following this policy are very selective in ... Advantages of Tight of Restrictive Credit Policy: (i). Minimize cost. (ii) ...
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Required return on receivables; Losses from bad debts; Costs of managing credit and collections. Shortage costs. Lost sales due to a restrictive credit policy ...
- Credit Controls in Western Europe: An Evaluative Review and ...
bank lending we have necessarily and to the same extent been operating a restrictive credit policy. We may by our very actions stimulate the provision of credit ...