Explain the Different Types of Reports

question 48

Essay

Explain the different types of reports.

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Definitions:

Credit Risk

The risk of loss arising from a borrower's inability to repay a loan or meet contractual obligations.

Payment Default

The failure to meet the legal obligations of a loan, such as not making the agreed-upon monthly payments.

Loan Principal

The initial size of the loan or the amount of money borrowed that is still owed, not including interest.

Low-credit-risk Company

A company deemed to have a minimal risk of defaulting on its debt obligations, often due to strong financial health and stability.