We’re fluent in startup finance. Now you can be too.

Learn more about common financial (and startup) terms here. To learn more about Pilot, fill out the form below.

Oops! Something went wrong while submitting the form.
Credit risk

What is credit risk?

Credit risk is the possibility that a borrower will default on any type of debt by failing to make required payments. If a company lends money to customers or other businesses, there's always a risk that the borrowers may not repay the loan, leading to a financial loss for the company.

Lenders and investors assess credit risk based on a variety of factors, including past repayment history, the borrower's current financial health, and the overall economic climate. In response to credit risk, lenders may increase the interest rate charged for the money they lend, or they may establish a credit limit to control the amount of money they're willing to risk. Credit risk management is crucial in ensuring a company's financial stability.

Need help with other finance or startup questions?

Pilot provides bookkeeping, CFO, and tax services for literally thousands of startups and growing businesses. We've successfully processed over 10 million transactions for our customers and have unparalleled expertise when it comes to helping businesses succeed.

We're the largest startup-focused accounting firm in the United States, and we'd love to help you. To talk to an expert on our team and find out what Pilot can do for you, please click "Talk to an Expert" below, or email us at info@pilot.com.

See what Pilot can do for you

Get the peace of mind that comes from partnering with our experienced finance team.

Oops! Something went wrong while submitting the form.