The Quarterly Journal of Judicial Law Views

The Quarterly Journal of Judicial Law Views

Credit Insurance and Small and Medium Enterprises(SMEs

Authors
Mansoor amini
Diba jafari
Shahid Beheshti University
Abstract
 
A credit transaction as a way of buying and selling goods and services, in which the price is not paid in cash; contains several risks for the seller. The risks of non-payment and bankruptcy of the buyer are the most important ones that could endanger the liquidity cycle and even life of the seller. The weight of the risk depends on the amount of capital and deals of companies. So, SMEs may harm more. Credit insurance is a common way of credit risk management which does not commonly used by the SMEs, notwithstanding their fragility and requirement. In this article the ability and efficiency of credit insurance for management of credit risks of this enterprises is examined. The authors consider that credit insurance could be one of the best methods of management of the risk for SMEs
Keywords
Commercial Credit
credit insurance
Factoring
Risk
Small and medium enterprises Management
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