What factors should be considered by management in the formulation of a policy for credit control?

Management should consider the company's overall financial health, including cash flow and liquidity, when formulating a credit control policy. They should assess customer risk profiles, evaluating creditworthiness through credit scores and payment histories. Additionally, the policy should align with industry standards and regulations, and include clear terms for credit limits, payment terms, and collection procedures. Finally, it's essential to incorporate a mechanism for monitoring and reviewing the policy's effectiveness regularly.