The maximum limit is calculated by multiplying the estimated turnover (calculated and retrieved from our analytical models) by the turnover percentage, the higher the turnover percentage the more aggressive the risk appetite and max limit, and the less the turnover percentage the more conservative the risk appetite and max limit will be.
The turnover percentage is typically determined based on industry norms, company-specific risk assessments, or historical data that aligns the company's risk profile and operational dynamics with the calculated credit limits., where a few turnovers are taken from a specific set of companies. Past trends in repayment behavior and purchase patterns also contribute to defining a multiplier.
The default turnover percentage is 1,5%.
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