Maximum credit

Maximum recommended amount of goods/services in terms of money for one transaction with payment term one month. Calculation of maximum commercial credit is based on experience of Creditreform on historical average commercial credit amounts in Latvia and level of the company’s credit risk. Maximum commercial credit recommended by Creditreform is advisable credit amount for average clients. For strategically important, regular and well-known clients usually credit limits are set higher.

What is maximum credit?

Maximum credit is a part of CREFO Score product and is recommended maximum amount of goods/services in terms of money for one transaction with payment term one month with no guarantee. Calculation of maximum commercial credit is based on experience of Creditreform, company's size, level of the company’s credit risk and industry. Maximum credit recommended by Creditreform is advisable credit amount for average clients.

For strategically important, regular and well-known clients usually credit limits are set higher.

How to use maximum credit?

The main advantage of maximum credit is the opportynity to easily determine credit limits for customers. For example, if customers inquired credit limit is smaller than Creditreform suggested maximum credit, then the decision could be made by the worker with lower qualification, however if customer needs higher credit limit, then the decision has to be made by the worker with higher qualification, or by the company's management.

Such decision allows to avoid controversy between sales department workers, who usually are dependant on sales volume and creditcontrol department.