Your Guide to Manage Credit Risk in Your Business

With approximately 6.3 crore MSMEs in India, our nation boasts the largest SME market globally, generating a whopping $1.8 trillion.

However, nearly half of Indian SME giants grapple with financial hurdles like liquidity crunches and credit risks.

?We have some questions for you -

• Do you assess your credit capabilities?
• What is your payment process?
• Do you have an eligibility criteria for credit sales?

?The crux of the solution lies in identifying the creditworthiness of customers. The post introduces a two-step process involving obtaining the customer's financials and calculating Creditor Velocity—a key measure of how swiftly a business pays its suppliers.

The narrative doesn't stop at diagnosis; it extends to proactive credit risk management strategies.

?Want to know more in detail? Head to our blog - https://contetra.com/2023/03/17/code-red-managing-credit-risk-in-your-business/