Credit danger is related to a debtor failing continually to repay that loan.
Exactly about credit risk: observe how a good credit danger management strategy can protect your money movement and help your organization.
Additionally pertains to products or solutions delivered on credit. For instance re payment regards to 1 month = 30 time credit. You are able to minimise credit danger with methods such as for example:
- Money on distribution
- Credit insurance coverage
- Letters of credit
- Self Insurance Coverage