Now more than ever, you need to increase your working capital in order to protect your business. With a global recession and pandemic in place, this means that the normal business climate is no longer applicable. Businesses are in disarray as they navigate through these changing times. It is definitely possible that some of your customers will be unable to pay your business if you sell on credit terms. You need to understand credit risk in order to protect your business and to preserve your working capital for solid business health. Credit risk management is essential.