Average Collection Period – Explained Simply

 Posted on Posted on: 17.12.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on Average Collection Period – Explained Simply

In short, the average collection period shows how fast the company can collect the money owed to them by the clients. Lower ACP means it doesn’t take long for the specific business to receive money from the sales done on credit, while higher AC…

What is a Credit Risk?

 Posted on Posted on: 13.12.2021 Modified on: 11.01.2022Categories Business Accounting Blog  Leave a comment on What is a Credit Risk?

The credit risk is, simply put, a risk associated with the borrower’s inability to pay back what they owe. Naturally, if that’s the case, the lending party won’t just lose whatever it is they are owed, but also the potential revenue…