Credit Standards Credit Standards -- The minimum quality of credit worthiness of a credit applicant that is acceptable to the firm Why lower the firm's credit standards? The financial manager should continually lower the firm's credit standards as long as profitability from the change exceeds the extra costs generated by the additional receivables 10-410-4 Credit Standards The financial manager should continually lower the firm’s credit standards as long as profitability from the change exceeds the extra costs generated by the additional receivables. Credit Standards -- The minimum quality of credit worthiness of a credit applicant that is acceptable to the firm. Why lower the firm’s credit standards?