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Insolvency Risk |
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Insolvency risk Insolvency Risk The risk that an individual or especially a company may be unable to service its debts. Insolvency risk is greater when the individual or firm has little or no cash flow, or when it manages its assets poorly. Banks assess insolvency risk when considering whether to make a loan. It is also called bankruptcy risk. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The loans are collateralized by receivables and inventory, and the receivables are covered by insolvency risk insurance with certain exclusions. |
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