Keywords
Abstract
As in credit institutions, companies when making credit sales, they are implicitly grant credit to their customers.
Commercial enterprises such as credit institutions, must have databases that provide information about the behavior of their customers. About small consumers generally individuals and small businesses can be harvested by the company's own means (within the limits allowed by the General Data Protection Regulation) or by external sources.
According to the Expresso newspaper, May 26, 2018, in the Economy section, the situation is very worrying in Europe. In Europe only "39.1% of companies pay on time, but in Portugal, according to data collected in April 2018, only 15.2% of companies meet the deadlines that are 30 days in the public sector and 60 days for the rest. In fact, Portugal is in the top 5 countries in the world whose businesses are less compliant. “It is a less than desirable position.
This leads to that the cost of funding is higher, because when companies ask for money, credit institutions include payment delays in the cost of capital. This means that when a customer is late, the supplier must finance it with the credit risk inherent
A credit risk rating system should include all methods, processes, controls, data collection and technology of information systems (IT) to support the measurement of risk. The main structure of this system is the classification of exposures similar risk classes, which is associated with a given probability of failure which must be monitored over time. One of the models used for individuals and small businesses is the designated statistical scoring models. In the case of larger companies should also come into consideration the opinion of experts? Also, from the classification system should be estimated loss that is closely linked to the type of operation and the side that is obtained.
In this paper we study several approaches to the impact of credit risk. We will see that the must important source of information is financial statements.