What is credit risk and how to determine it? | Moonflow

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credit riskWhat is credit risk ? According to Ana María Gómez Cardona , to understand it, it is necessary to define what risk itself is, which is described as “the probability that something will happen.” There are different types of risks, one of which is credit risk , and it is associated with a failure to collect this benefit granted to clients. To reduce the risk, it is key to have debt collection software . What will you find in this text?

How to know the credit risk?
The importance of analyzing credit risk
How to know the credit risk?
Now, credit risk can be observed from the perspective of both the entity buy sms list grants it and the person who receives it. The evaluation of credit risk is crucial for the entity to provide credit to a person who complies with payments and has solvency, since in this way the probability of obtaining liquidity from payments improves, to cover the costs of the organization. If you are interested in knowing more about credit risk , we invite you to see our publication on Moonflow Academy at the link.

As for the factors that contribute to determining a person's credit risk, we find quantitative and qualitative factors. In the first case, we find the income, expenses and debts acquired by that person; while, in the qualitative cases, we find:

Studies show that women have better payment behavior than men.
Studies show that men with the presence of a female figure at home (wife-mother) have better payment behavior than those who do not.
Studies show that older people have better credit behavior when it comes to paying their obligations than younger people.
The longer the duration of the loan, the greater the risk, since many events can happen in a person's life over a longer period.