Credit Risk and Policy of Digital Content Production Online Trading

Basic on Satoris-Hill credit policy decision model (SHPDM), this article analyzes the advantage and ability of bad debt risk resistance as well as comparison of digital content manufacturer with traditional one by virtue of profit under scenarios of the former adopting relative credit policy. We find that digital content manufacturer has stronger ability of risk resistance of bad debts than traditional product manufacturer in terms of credit sale. Furthermore, we prove that once reaching a degreed growth of sale, credit sales for the costs of bad debts and extended credit can be remedied for digital content manufacturers.