Pull individual credit reports on consumer applicants to assess payment history. Don't overextend customers if they can't afford to repay with credit lines that are too high. This can lead to obvious problems in repayment. In short, scrutinize credit worthiness of applicants to reduce the risk of taking on obvious credit risks as credit customers. If too many people in an organization have the authority to make purchases, it can lead to duplicaton of purchases, excessive purchases and difficulty in controlling unnecessary costs.
Many employees can be too free with someone else's money.
To allow a number of them to make buying decisions and sign purchase orders can mean that some purchases are for personal convenience more than business necessity. Limit the number of people who have purchasing authority to either a central purchasing function or to key management personnel who are responsible for bottom line results. They will tend to ask more diffcult questions in terms of what and how much should be purchased. If not, find out. Ask yourself whether all of them actually need to have it or whether that authority can be transferred somewhere else.