Credit Notation Assess Your Customers
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Credit Notation < Assess your customers
http://www.creditmanagement-tools.com/credit-notation-c1-r15.php
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Credit Notation
The business creditworthiness assessement tool presented here is used and improved in Credit Management services of many companies. Simple and easy to use (a few minutes needed to perform an analysis), it is including all the main criteria to perform this analysis while producing useful advises in credit risk decisions you have to make with your customers. This tool will give you for each client recommendations to avoid bad debts.
3
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Credit Notation method
The credit notation is based on behavioral information, legal and financial informations: Payment behavior, Age of the company, Legal form of the company, Age of the business relationship and evolution of orders, Evolution of the turnover, EBIT and net income, Financial structure with the level of equity in relation to total assets, Indebtedness, working capital and cash ... etc. A total of 15 criteria are used to build up this "credit score", each criteria has a defined weight in the final calculation. Four notes are possible: A: Company solid, B: Company stable, C: Company fragile, D: Company close to failure. It is a clear and useful help in the customer risk analysis and the result has to be integrated into your business approach to request, if needed, down payments or payment guarantees. The result of the credit notation is one of the elements used to calculate the credit limit granted to your customer.
Use the simplified credit rating with clients who refuse to disclose their balance sheet and income statement, which is common in several countries. In some countries (notably the Middle East) commercial culture is that these documents are confidential and are only internal management tools for managers. In this case, the solvency assessment will be based on others criteria like compliance and payment behavior, which is of course reflected in the tool.
Next: secure your receivables
3
Tools download:
Credit notation Credit risk Kit Easy credit notation
1 of 2
1/18/2014 9:36 PM
http://www.creditmanagement-tools.com/credit-notation-c1-r15.php
My account:
Tools and tutorials to get paid by your clients
ABOUT
RISK MANAGEMENT
COLLECTION
CREDIT MANAGEMENT
Subscribe
Credit Notation
The business creditworthiness assessement tool presented here is used and improved in Credit Management services of many companies. Simple and easy to use (a few minutes needed to perform an analysis), it is including all the main criteria to perform this analysis while producing useful advises in credit risk decisions you have to make with your customers. This tool will give you for each client recommendations to avoid bad debts.
3
Download the tools
Credit Notation method
The credit notation is based on behavioral information, legal and financial informations: Payment behavior, Age of the company, Legal form of the company, Age of the business relationship and evolution of orders, Evolution of the turnover, EBIT and net income, Financial structure with the level of equity in relation to total assets, Indebtedness, working capital and cash ... etc. A total of 15 criteria are used to build up this "credit score", each criteria has a defined weight in the final calculation. Four notes are possible: A: Company solid, B: Company stable, C: Company fragile, D: Company close to failure. It is a clear and useful help in the customer risk analysis and the result has to be integrated into your business approach to request, if needed, down payments or payment guarantees. The result of the credit notation is one of the elements used to calculate the credit limit granted to your customer.
Use the simplified credit rating with clients who refuse to disclose their balance sheet and income statement, which is common in several countries. In some countries (notably the Middle East) commercial culture is that these documents are confidential and are only internal management tools for managers. In this case, the solvency assessment will be based on others criteria like compliance and payment behavior, which is of course reflected in the tool.
Next: secure your receivables
3
Tools download:
Credit notation Credit risk Kit Easy credit notation
1 of 2
1/18/2014 9:36 PM
