What aspects are to be followed, checked before fixing credit limit of a new customer?

1.Credibility of the customer2.Market Share3.bank transaction4.Debt , expenses calculation5.year of experinece in the business6.Nature of business & what type of customers he's dealing with ,7.Business growth analysis For the past years

First you need to check  financial account of new customer and analysis it and check their Z-score.

also your maket share, product age, avilability in market, comptitor behaviour.

Before allowing credit limit complete analysis of the credit request is ba made which include the following factors; 

Management of the business.

Financial statement analysis.

Sector /industry analysis

Client credit worthiness and market reputation.

Security offered.

Business age

Loan purpose

etc

Aspects to be considered:1) Character - Whether the new customer will live up to their stated principles.2) Capital - Working capital requirements and debt structure of the new customer.3) Capacity - Capacity of the new customer to pay vendors.
This can be determined by the calculation of the average receivable period and average payable period.4) Conditions - How the new customer's products or services stack up in the light of the present economic conditions?5) Collateral - Whether the new customer will be able to provide adequate security (e.g.
bank guarantee) if the risk is perceived as high.
In addition to the above five points, the legal status, reputation, duration of business, revenue and profit figures, number of employees, trade and bank references, payment history, reports by credit rating agencies should also be considered before fixing credit limit of a new customer.

First Willingness to repay and second its adequacy for repayment: a- As a first steps towards it willingness may be checked through different paramenters i.e.
market check from suppliers, buyers, existing lenders, stake/equity in business, repuation in market.
b- Similarly the ability to repayment can be confirmed through its, cash flows generation activities, strength of financials, volume of business transactions, interest coverge financial leverage, business experience and acumen, negociating power with its buyer ans supplier, orders in hand so on.....