PUBLISHER: MALAYSIASME.
A growing business would normally place revenue generation as a priority and be less selective in the quality of customers it deals with. However, without proper credit controls in place, credit risk may surface later and cause massive disruption to the continued operation of the business. On the other hand, a more established business may overlook the risk of credit default due to trusted relationships it has established with its quality clients. It may however be
exposed when its clients’ buyer defaults. Furthermore, the financial stability of its clients cannot be taken for granted. Markets no longer remain in a stable state when they may be shaped by new entrants. …
