Limit Risk When Granting Trade Credit for Businesses in Vietnam

In the context of fierce competition in the market economy, raising capital is an inevitable need of most businesses. To meet the short-term capital needs of businesses, besides the main form of credit which is bank credit, commercial credit is also being used quite commonly by businesses.

Commercial credit is a credit relationship between businesses carried out in the form of buying and selling goods on credit and brings benefits to both sides. Buying and selling goods on credit is considered a form of credit- the seller transfers to the buyer the right to use the capital temporarily for a certain period of time, and when the agreed deadline arrives, the buyer must return the capital. to the seller in the form of money and also the profit for the seller.

This article aims to learn about the risks when granting commercial credit to businesses. To achieve this goal, we used qualitative research methods. The results of this study aim to provide an overview of the current risk situation when granting commercial credit to businesses, thereby providing solutions to limit risks when granting commercial credit.