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Intra company basis known as decision variables that affects the amount of trade credit i.e. investment in receivables. There are many external factors which affect the credit policy of the firm such as competition in the market, economic situation as well as the internal factors. It's the credit policy which helps the firm to get its level of credit. One should work on the credit policy costs and variables both individually and jointly to understand its impact on the goal of maximization of profit. Goal of credit policy not only refers to the profit generated but also includes the importance of value.

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