In the furniture industry, our customers tend to use their entire credit line. Customer credit lines are fluid and can increase or decrease depending on the customer’s needs. Large early buys with extended terms are the norm to restock retail stores before the season begins. Customers also need enough credit for regular orders throughout the year. Since we manufacture outdoor casual furniture, we deal with seasonal retail customers, as well as designers, and contract purchasing agents. We need to be aware of the customer’s high and low cash flow seasons depending on their location. To help us with our risk management framework, we look at industry credit groups, customer financial statements, and trade references to monitor the customer’s credit worthiness on a regular basis.