You have been recently employed as a junior credit controller by a company that deals with different types of customers. You want to impress the credit manager, and reinforce your understanding of the companys operations, by reviewing plans to extent credit to potentially more profitable customers.

The company predominantly deals with the following types of customers:

Different private individuals

Sole traders

Partnerships (incl. limited partnerships)

Limited companies

Public limited companies

Government bodies (incl. supranational government bodies)

and others

Write a memo to your manager outlining the advantages and disadvantages of granting credit to each of the above with special emphasis placed on the most profitable ones.