The most important points of controlling and monitoring credit risk are;
• The first is to prevent the trustee from running short of cash due to overinvestment in debt or loans.
• Second, the company loosens its credit policy to increase sales, but at the same time runs the risk of refusing or delaying payment. Credit risk control is conducive to achieving the best balance between the two. If the lender does not have credit risk control measures, it can lead to weakening of cash liquidity and reduced profitability due to uncollectible payments.
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