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Risk-based pricing--commercial lending and trade credit.(Selected Topic)

Business Credit

| June 01, 2004 | COPYRIGHT 2004 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Risk-Based Pricing

Credit approval is one of the most important processes for commercial lenders, as it is their primary source of income. It is equally important for many other businesses since it supports a positive vendor-customer relationship. The credit approval process relies upon assessing risk accurately and making a sound decision based on that analysis. Striking a balance between an acceptable level of risk while also meeting customers' needs is key to maximizing revenue and customer relationships. Lenders must minimize their exposure to significant potential losses while maintaining goodwill with their customers and growing the business. Risk-based ...

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Source: HighBeam Research, Risk-based pricing--commercial lending and trade credit.(Selected...

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