What is financial risk and how can it be controlled?
Financial risk refers to the possibility of losing money and is an inherent part of any business venture. Good financial risk management involves identifying potential risks, assessing how much risk can be absorbed, mitigating the identified risks, and controlling a variety of risks, using a range of different methods.
Payment schedule is an agreement between the buyer and the seller which defines when and how credit will be repaid. Read to learn more about payment schedules.
Credit protection is used to protect against the risk of non-payment by a customer. A business concerned about the risk of default or non-payment can draw up an agreement with a company such as Allianz Trade to provide credit protection services
The checklist is specifically designed to guide decision-makers and project owners through the key decision points for a successful surety bond strategy.
Gearing ratio is one way to measure a company’s financial health. It involves comparing the company's capital to the amount of money the company has borrowed.
The pros and cons of extending credit to customers
By extending credit to customers, you are telling them that you trust them to pay their bills, and you are financially healthy with access to working capital.
Once you have decided to extend credit, you need to establish credit terms. Credit terms refer to the specifications for invoice payment at a later date.
