Gearing ratio is one way to measure a company’s financial health. It involves comparing the company's capital to the amount of money the company has borrowed.
Credit protection is used to protect against the risk of non-payment by a customer. A business concerned about the risk of default or non-payment can draw up an agreement with a company such as Allianz Trade to provide credit protection services
What is financial risk and how can it be controlled?
Financial risk refers to the possibility of losing money and is an inherent part of any business venture. Good financial risk management involves identifying potential risks, assessing how much risk can be absorbed, mitigating the identified risks, and controlling a variety of risks, using a range of different methods.
What is a bad debt expense and how to protect your business?
Bad debt represents money due to your company which is unlikely to be paid. Tracking and managing bad debt is essential to ensure a company’s financial health.
In the world of business, the term “outstanding” refers to money that is due but has not yet been paid. An “outstanding balance” is a balance that has not yet been settled and is owed to the creditor by the debtor.
