Tag: commercial
Commercial Risk
by admin on Jul.20, 2008, under Banking
In economic transactions sellers can give its customers the time for payment. However, when the couples are entitled to receive payment, the seller could face a nasty surprise: a delay of payment by the customer or worse yet the non-payment.
Consider these two bad assumptions; we can say that the seller granting the time extension runs a risk.
There are some things the seller can take to decrease the risk of trade.
First of all, when you have a relationship with a person or company operating abroad, we must understand whether the risk is linked only to an economic or a political factor, so it comes to country risk.
In the case of country risk, bankruptcy may be due to factors of economic origin, politics, banking, catastrophe occurring on that country and called EGS, events or generators Left.
The elements of insolvency may be related to law or fact to the private debtor or his guarantor, but may be due to political decisions in the country of origin, which impedes the execution of commercial contracts.