Which of the following could these be?

When looking at credit scores, a supplier may be classified as a high risk for reasons that are not linked to poor credit.

Which of the following could these be? Select TWO
A . The organisation is new
B . The organisation has no loans or credit cards
C . The organisation has lots of fixed assets
D . The organisation does not employ many people

View Answer

Answer: B, C

Explanation:

New organisations or those with no loans/ credit cards may have low credit scores. This is simply because they do not have enough financial history to make their scores good. That means banks au-tomatically class them as higher risk, because they simply don’t know that they’re trustworthy yet.