Tips for Managing Credit & Risk Trading​

Managing credit risk effectively is crucial for any business extending credit. Understanding the concepts of "credit risk" and "credit risk management" allows businesses to mitigate potential losses from customers defaulting on payments, ensuring long-term financial health and stability.

In the world of corporate finance, the term “outstanding balance” refers to all amounts of money that are due, but which have not yet been paid and are owed to the creditor by the debtor. Managing outstanding balances is a complex but crucial aspect of good business and can have significant knock-on effects for the financial health of the company.

Learn how Days Payable Outstanding (DPO) impacts cash flow, supplier relationships, and financial strategy. Discover DPO calculation, analysis, and trade credit insurance solutions for business success.

Learn how to effectively manage accounts receivable to improve cash flow and reduce financial risks. Discover the role of trade credit insurance from Allianz Trade in safeguarding receivables.

Learn how credit protection minimizes financial risk and ensures cash flow stability. Explore best practices and discover how trade credit insurance from Allianz Trade secures your business against non-payment.

How small and mid-sized businesses can safeguard their growth, assets, and client relationships with trade credit insurance.

In today's dynamic business environment, the risk of default is a significant concern for companies trading on open account terms. Late payments, missed invoices, and outright defaults can disrupt cash flow, strain supplier relationships, and threaten overall business stability. To safeguard operations, businesses must understand the nature of default risks and implement strategies to mitigate them effectively.

In the realm of global trade, managing credit risk is critical, especially when expanding into new markets or dealing with unfamiliar buyers. A bank guarantee serves as a financial instrument designed to protect sellers from potential buyer default or insolvency, offering a vital assurance in high-stakes transactions. But is a bank guarantee always the best solution? Here, we explore the fundamentals, benefits, and limitations of bank guarantees and their role in today’s evolving trade landscape.

Learn about risk avoidance, a strategy to eliminate threats entirely. Explore its pros, cons, and how Allianz Trade supports businesses in managing risks effectively.

The cash ratio evaluates your ability to meet short-term obligations with cash using three main components—cash, cash equivalents, and current liabilities.