Study on credit sale risk assessing model based on credit sale risk degree

In view of the nature of credit sales risk, the credit sale risk degree is put forward as a new standard to measure the credit sale risk in the paper. It is calculated by customers´ average loan recovery rate and it can not only tell whether the loss will happen but also can measure the specific extent of the loss. So this standard has three advantages of directness, continuity and operability. According to the proposed standard, the credit sale risk is divided into five grades and a credit sale risk assessing model based on support vector machine (SVM) is established in the paper. The empirical analysis shows that the proposed model is feasible and accurate for measuring the risk of sale on credit.