Welcome to our presentation on dealing with credit risk in B2B transactions. In this session, we will explore the types of credit risks, assessing creditworthiness, mitigating risks, and best practices for credit risk management.

1. Dealing with Credit Risk
in B2B Transactions
Welcome to our presentation on dealing with credit risk in B2B
transactions. In this session, we will explore the types of credit
risks, assessing creditworthiness, mitigating risks, and best
practices for credit risk management.
by demanday

2. Types of Credit Risks in B2B Transactions
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1
4
2
Payment Default Risk
Legal and Regulatory Risk
Delivery Risk
Counterparty Risk
Learn about the risks associated with
customers failing to make timely
payments.
Discover how legal and regulatory factors
impact credit risks in B2B transactions.
Understand the risks arising from the
financial stability and trustworthiness of
your business partners.
Explore the challenges of ensuring timely
and accurate delivery of goods and
services.

3. Assessing Creditworthiness of
B2B Customers
1 2 3
Financial Analysis Credit Scoring
Models
Trade References
and Credit Checks
Learn how to analyze
financial statements to
evaluate the
creditworthiness of
potential customers.
Discover how credit
scoring models can help
assess the
creditworthiness of B2B
customers.
Find out how to use
trade references and
credit checks to gather
insights about
customers' payment
behavior.

4. Mitigating Credit Risks in B2B Transactions
Credit Insurance Factoring and
Invoice Fin an c in g
Letters of Credit and
Bank G uarantees
Explore the benefits and
implementation of credit
insurance as a risk mitigation
s t rat egy .
Discover how factoring and
invoice financing can provide
liquidity and mitigate credit
ris ks .
Learn about the importance of
letters of credit and bank
guarantees in mitigating credit
ris ks .

5. Monitoring and Managing Credit Risks
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2
1
Early Warning Signs
Regular Credit Reviews
Collection and Recovery Strategies
Learn how to identify early warning signs of credit risks to take timely corrective
actions.
Explore effective strategies for collections and recovery to minimize credit losses.
Discover the importance of conducting regular credit reviews to monitor potential
credit risks.

6. Best Practices for Credit Risk Management
in B2B Transactions
Clear Credit Policies
and Procedures
Effective Credit
Limit Setting
Regular
Communication with
Customers
Establish transparent
credit policies and
procedures to ensure
consistency and minimize
ris ks .
Learn how to set
appropriate credit limits
for customers to balance
risk and opportunity.
Explore the importance of
maintaining open
communication channels
with customers to manage
credit risks more
effectively.

7. Conclusion
Wrapping up our presentation, we have discussed various aspects of dealing with credit risk
in B2B transactions. By understanding the risks, assessing creditworthiness, implementing
risk mitigation strategies, and following best practices, businesses can navigate credit risks
successfully.