Relying on self-reported information, trade references, or credit bureau reports alone is no longer sufficient. Financial statements provide an objective, standardized view of a company’s financial health , reducing bias and enabling more consistent, strategic credit decisions. By requesting the right financial documents— income statements, balance sheets, and cash flow statements —credit teams can evaluate repayment capacity, identify emerging risks, and benchmark counterpar

Liquidity risk refers to a company's ability to meet its short-term financial obligations, such as paying off debts or operational...

Effective communication ensures your business can identify, estimate, mitigate, and respond to credit risks in a timely and informed...

Longevity in business shows that a company has successfully navigated different economic cycles, built solid relationships with customers...

The balance sheet evaluates what a company owns (assets), what is owes (liabilities), and the net ownership value (equity).

Industries are constantly evolving due to technological advancements, regulatory changes, and shifting consumer demands. Lenders and...

Credit ratings provide forward looking opinions into the financial health and repayment capacity of borrowers. Article Topics What are...

Financial ratio analysis provides insights into a company's profitability, leverage, and liquidity by evaluating both current performance...