The credit cycle is a key economic concept. It shows how the availability and ease of getting credit change over time. It’s linked to the business cycle, as economic ups and downs affect how easy it is to get loans. When the economy is growing, the credit cycle is usually expanding. Interest rates are low,…
A business’s financial health depends on its cash flow. This is the flow of money in and out of the company. Cash flow is key for daily operations and long-term success. It’s greatly affected by payment terms. Payment terms are the rules set by a buyer and a seller for paying for goods or services….
Credit risk is a big challenge for the banking world. It’s about the chance a borrower won’t pay their debts. This can cause the bank to lose money. Banks use their own money to take on their customers’ risks. They do this to earn more, but it can also mean they might lose more. Banks…