Management: Boost Risk Assessment In Tough Times
August 27th, 2010
SMEs are being urged to step up their risk assessment processes as they work hard to stay in business during the toughest year they have faced in decades. Credit bureau Veda Advantage says just 5% of these small and medium sized businesses actually conduct proper risk assessment which includes an assessment of creditors’ ability to pay. Veda Advantage Managing Director John Roberts says without sound risk assessment in place these businesses will find it increasingly difficult to obtain credit from mainstream lenders.
Roberts says “thanks to the recession banks have limited lines of credit so they want to know when they lend to as SME the company has robust business practices in place – and that starts with risk assessment.” Veda Advantage data shows a 29.72% increase in the number of defaults in July 2010 compared with the same month last year. SMEs account for about 96% of all enterprises in New Zealand.
Source: <www.vedaadvantage.com>
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