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James owns a small company which sometimes suffers from credit risk.
Which of the following measures should he put in place to help reduce this risk?
Suggested Answer: A
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28 comments · newest first
DA
Danilo
7 months ago
C is good for relationships, but doesn’t reduce credit risk directly.
ME
Meghan
7 months ago
B could help too, but it’s not as direct.
WI
Wilbert
8 months ago
Agreed, A helps assess customer reliability.
SO
Sommer
8 months ago
Totally agree with A and C, those are solid moves!
JA
Janine
8 months ago
Lower interest loans? Sounds too good to be true...
ET
Ettie
9 months ago
Paying suppliers faster could actually improve relationships!
LI
Linwood
9 months ago
I don't think reducing bank loans will help much.
TE
Teri
9 months ago
A) Introduce credit checks for new customers. Gotta know who you're dealing with, am I right?
AR
Aron
9 months ago
D) Look for a loan with a lower interest rate. This will save the company money in the long run.
CH
Cherrie
9 months ago
B) Reduce the company bank loans. This will lower the overall debt and associated risk.
HO
Hobert
9 months ago
A) Introduce credit checks for new customers. This is the most effective way to reduce credit risk.
VO
Von
10 months ago
I feel like looking for a loan with a lower interest rate might just be a temporary fix. It doesn't really address the core issue of credit risk.
MA
Margurite
10 months ago
Paying suppliers' invoices quicker seems like it could help with cash flow, but I'm not convinced it really reduces credit risk overall.
RO
Roosevelt
10 months ago
I'm not entirely sure, but I remember something about reducing bank loans possibly not directly impacting credit risk.
QU
Quentin
10 months ago
I think A is the best option. Credit checks are essential.
BU
Buddy
10 months ago
A) Credit checks are a must for new customers!
KA
Kattie
11 months ago
C) Pay suppliers' invoices quicker. This will help maintain good relationships with suppliers.
TR
Tresa
11 months ago
I think introducing credit checks for new customers is definitely a good idea. It helps assess their reliability before extending credit.
JU
Justa
11 months ago
I feel pretty good about this question. I think the credit checks for new customers is the clearest way to address the credit risk issue described.
KE
Kenneth
12 months ago
Looking for a loan with a lower interest rate doesn't seem directly related to reducing credit risk. I'm a bit confused on how that would help in this situation.
KI
Kiley
12 months ago
Paying suppliers' invoices quicker seems like it might help, but I'm not sure how much that would really impact the credit risk. I'd need to think that one through more.
SH
Shalon
12 months ago
Hmm, I'm not sure. Reducing the company's bank loans could also help, but I'm not confident that's the best approach here.
SH
Shannon
1 year ago
I think introducing credit checks for new customers would be the best way to reduce credit risk. That's a pretty straightforward solution.
DA
Dannie
7 months ago
True, credit checks can save a lot of trouble later on.
NI
Nieves
7 months ago
Reducing bank loans could help too, but checks are priority.
JU
Junita
7 months ago
Definitely! It helps identify potential risks early.
MA
Margot
10 months ago
I agree, credit checks are essential for new customers.
CA
Carline
11 months ago
Plus, it’s a simple process to implement.