It is very important choose the right credit limits for your players pay per head business. Each player should have their very own credit limit that is specifically calculated to them. One of the biggest things when deciding on how much of a credit limit to assign to each player is how well you know and trust the person. If the player is a good friend that has a good paying job, and you know that they are always going to be good for the money, than it is fine to give them a higher credit limit of say 3k-5k a week. If you have a player that is a good friend, but does not have a steady job, or always has lots of bills and expenses to pay, but you know they will always pay when they lose, than it is wiser to give him a smaller limit, such as 1k-2k.
If you have a player that is a friend of a friend or someone that is thru a referral that you do not even know, it is wise to start this player off with a smaller limit of $300 to $500 credit limit a week. There are two reasons to start this player off with a smaller limit. The first is clearly because you do not know the person, which means there is no trust factor that has been established, so you do not know if the person is actually going to pay you if they lose. Also they may be trying to just take a shot on you, which means if they win the first week and you pay them, then the second week they lose they do not pay you, so not only did you not get paid on what they lost, but since you paid them first when they won, then your out that money as well. The second reason why it is important to start off a new player that you do not know personally with a lower credit limit is because you want to see what type of plays they are betting. Not everyone is a mush loser in the pay per head industry, and there are some sharp players out there, so it is important to monitor any new unknown player with smaller credit and wager limits, so you can make sure that the plays he is betting is the type of action you even want to take.
Also with a new unknown player it is smart to give a smaller credit limit to, in order for you to build up a trusting relationship with them. Over the course of the first few months of the unknown player playing with you, if they are on time with their payments and pay in full, then it would be safe to bump up their credit limit, because the person has demonstrating that they will and can pay you when they lose.
In the pay per head business the usage of giving credit limits clearly has benefits and drawbacks, but the key is managing them correctly and safely. Sure it may look great on paper that your players lost a lot of money, however the only way you truly profit as an agent, is if you can fully collect the total amount of loses. Also if you are a stand up agent that is paying your winners quickly, it makes collecting from the losers that much more important, because if you are having trouble collecting the losses than it will significantly affect your bottom line. So that is why it is extremely important to be smart with the credit limits that you offer your players, and to make sure to apply a credit limit that is specific to each person, and that adheres to everything you know about the person.