How does the ESB Group eliminate credit risk and risk of defaults?
We are cognizant of the fact that we cannot eliminate credit risk in its entirety, but we can manage credit risk in the following 3 main ways: First, we joint venture with prominent, business leaders and community leaders who have a strong, fundamental understanding of local markets and its people. Based on our business model, we take an equity, ownership stake in our clients businesses. While we hold a minority equity stake, our ownership position ensures we approve business purchases, processes (and other transactions) and maintain direct, oversight. Entrepreneurs and SMEs are also required to file monthly statements with our partner organizations and The ESB Group.
We are cognizant of the fact that we cannot eliminate credit risk in its entirety, but we can manage credit risk in the following 3 main ways: First, we joint venture with prominent, business leaders and community leaders who have a strong, fundamental understanding of local markets and its people. Based on our business model, we take an equity, ownership stake in our clients’ businesses. While we hold a minority equity stake, our ownership position ensures we approve business purchases, processes (and other transactions) and maintain direct, oversight. Entrepreneurs and SMEs are also required to file monthly statements with our partner organizations and The ESB Group.
