Commercial risk is defined as the risk a company takes by offering credit with no collateral. It is a common term in the business world. Any time a company offers credit, be it trade credit, credit terms like 2/10 net 30, or other, they are essentially offering financing with no collateral. In this situation, the company is taking a commercial risk. You may need solutions.
Explained as the risk a company takes with it’s customers, it is a common risk of doing business. Most companies allow credit terms. So, almost every company must take on some form of commercial risk. Analysis of this is often professionally evaluated by companies, like insurance providers, who must make sense of the commercial risk of a company to do business. Management effects the company as well as insurance providers, investors, lenders, and more.
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