Apparently, most firms fail to check new clients' credit worthiness. Are they therefore exposing themselves to unnecessary risk when granting trade credit?

Link banks and credit card companies like American Express? Meaning that they are giving plastic cards to them so easily?

I think beam counters are doing their job and calculating the risk, aren't they?

I would venture a guess that in some cases they are willing to take the risk just to get a new customer. However, the smart ones understand where the line is, and can put there foot down at that line. The blanace between gaining a new customer and revenue and also getting "screwed" can be very thin, however