Title: (Optional) Identify the benefits and costs of extending credit.
Course: Strategic Marketing (formerly Marketing, Advanced) (12152) > Section: Examining Financing

Identification should include

- the reasons for granting or denying credit
- the differences between consumer credit and business credit markets
- the benefits of granting credit (e.g., increased customer base, ability to sell higher-priced products)
- the costs associated with extending credit (e.g., fees, collection costs).

Process/Skill Questions:

- What are the differences in considerations between extending credit to a business and to an individual?
- What are the consequences of granting credit to customers who are not creditworthy?
- What risks are involved with granting credit?
- How do store credit cards encourage customer loyalty?