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How do you build or use a credit scoring model? What forms of security or risk mitigation can support extending credit? What KPIs measure credit control effectiveness? How do you manage credit risk for a concentrated customer base? How do you set a credit policy's approval authority matrix?
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How does credit control balance revenue growth with risk in practice?

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Answer

It uses risk-based differentiation: extend generous terms/limits to strong customers to win business, apply tighter terms, security, or prepayment to risky ones, and monitor continuously. Working with sales, it enables profitable growth while keeping bad debt and DSO within targets—saying 'yes, but on these terms' rather than a flat no.
Real-world example Instead of rejecting a risky but strategic prospect, credit control approves a capped limit with a guarantee, enabling the sale safely.

Common follow-ups: What does risk-based differentiation mean? | How do credit and sales collaborate?

Collections & Bad Debts Payment Runs Credit Control
All 22 Credit Control questions