How do you asses the credit worthiness for a customer?

My5 point guidance is below: 

1. Due diligence - track record of promoters / company, credit history, bank inspections

2. Financial performance and debt repaying capability

3. Position in the industry post comparision

4. Projections about the company / industry outlook

5. Turn around time,  break-even point and cash flow generation capability of the company for multiple operating cycles

Require a credit application

Check publicly available information

Use credit evaluation tools

Corrections & Amplifications

We probe the customer as much as possible. We should paint the picture with answers provided and find the credit worthiness