The credit limit represents the maximum amount a lender is willing to extend to a borrower, defining their borrowing capacity. Credit risk exposure, on the other hand, assesses the potential financial loss a lender faces if a borrower defaults on their obligations, considering factors such as the borrower’s creditworthiness and the amount of outstanding debt. While the credit limit sets a boundary for borrowing, credit risk exposure quantifies the potential risk associated with extending credit to a particular borrower.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Go Digital in Your Credit Department
Fundamentals of New Generation Digital Order-to-Cash Solutions: Things you need to know
Data-driven Finance – The Order-to-Cash Case Study
Digital Order-to-Cash: A Roadmap to Collections Automation (Part 2 – Keeping the Customer and Maximizing Cash Flow)
Add AI to Your Order-to-Cash Process
AR Automation for JD EDwards
AR Automation for SAP
AR Automation for Oracle
AR Automation for NetSuite
AR Automation for PeopleSoft
