Assessment of trade credit risk in business companies

Verslo įmonių konkurencingumo iššūkiai verčia nuolat analizuoti rinką ir sudalyti kuo palankesnes atsiskaitymo sąlygas. Prekinis kreditas gali būti viena svarbiausių prielaidų įmonių konkurencingumui ir verslui plėtoti. Straipsnyje analizuojama įmonės prekinio kredito nauda verslui, rizikos veiksniai, atskleidžiamos vidinių ir išorinių verslo veiksnių bei prekinio kredito rizikos sąsajos. Atlikti tyrimai leido sudalyti įmonės prekinio kredito rizikos įvertinimo metodiką. Metodika yra pagrįsta vidinių ir išorinių pirkėjo verslo rizikos veiksnių analize bei apima 12-os finansinių ir nefinansinių rodiklių įvertinimą. Taip pat nustatyta, kad nepaisant tam tikrų trūkumų, metodika yra tinkama taikyti praktikoje.The article's topic is relevant, because the importance of trade credit constantly increases. Trade credit can be one of the most important preconditions for the competitiveness of the enterprise and business development. There is a lack of scientific sources in the field of estimation of trade credit risk - there is no any particular, simple to use methodology to assess company trade credit risk. The aim of the article - to compose a methodology of assessment company trade credit risk for Lithuanian small and medium enterprises. In the article, following scientific sources approach, the advantages, risks and key financial and non-financial trade credit risk factors were identified. Based on the scientific sources and expert evaluation, the methodology of company trade credit risk assessment was created. The methodology is based on 10 key indicators identified by the experts. 12 financial ratios and non-financial indicators are being used - current and quick ratio, gross and net profit margin, Altman Z model, debt ratio, stock and debtors turnover, enterprise age, reputation, number and dynamics of employees. The indicators have been scored. The highest possible score is 100. The research approves that the methodology suits to be used in practice. It|S simple, reliable, cheap, non-time consuming; it is easy to collect data, the data being formalized and quantified. The disadvantages of methodology - the data is not always reliable and some ratios are of different importance in the different economic sectors. The methodology should be modified to adapt for the different sectors of business