Analysis of the Risk Associated with the Sale of Commercial Credit, at Romanian Companies’ Level
Author:
Univ. Lecturer Mirela GANEA , Ph. D.; Assistant Adriana IOȚA, Ph. D. Student
JEL:
G11, G30, M41
DOI:
Keywords:
commercial credit, risk of not cashing, scoring analysis
Abstract:
Most of the companies in a market economy works with commercial credit – supply products, execute works, providing services, whose value is to be charged at a later date. In the period between the date of delivery of the products and the date of cashing the price, the company in question acts as financier (creditor) of his client activity, assuming the risk of not collecting these amounts. In order to quantify and reduce the risk that assumes a firm at the time of sale on commercial credit, the authors have developed an integrated system of analysis, based on specific indicators at the level of the trade balance. \r\nThe system analyses the essential aspects of the company’s activity that benefits of commercial credit. It identifies and quantifies, through a scoring system, the risk that this company does not honors its obligation for payment at the maturity date. Depending on the detected level of the risk, the system recommends to its user the period and value of commercial credit. This system of analysis serves the supplier company which sells on credit, and it represents a reliable tool for risk management.\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n