What are some of the factors used in making a credit decision?

Some key points:

- Scoredboard (when available)

- Fixed income

- Professional stability

- Past credit experiences

- Product adjustment to the customer's profile

Risk appetite of firm

willingness of taking the risk

Above are principle factors, below are micro analysis to be done before extending credit.

If your question is in context of extending credit to customers then:

Credit worthiness of customer.

External Opinion on customer.

Verification of Financials.

Economy of scale of customer.

Then some documentary requirements, these may vary company to company.

Now, if your question was in context of taking a credit,

Its very simple, see the working capital situation. Take credit when required, do not pay extra price for sake of credit, look at opportunity cost.