Enterprise customer credit rating index system
To establish a credit rating index system, we must first make clear what factors should be included in the rating, that is, what are the main factors that determine the credit status of customers. Generally speaking, international rating focuses on elements such as 5C, CAMPAIRI and 5w, while domestic rating focuses on five-factor analysis.
There are different opinions on the factors that form credit in the world, including 5C factor, 3F factor and 5P factor, among which 5C factor has the widest influence.
I.5C elements
The so-called 5C refers to the five characteristics that affect the credit status of enterprises (because the first letter of the English words expressing these five characteristics is C: personality, ability, capital, cooperation and conditions).
(1) Moral quality
Refers to the possibility that an enterprise is willing to fulfill its payment commitment. This is a measure of a company's reputation. Whether you are willing to do your best to pay off the payment as promised will directly affect the speed of accounts receivable recovery and the moral quality of customers. In particular, the age of a company is a good representative of its debt repayment reputation.
(2) Solvency
Refers to the ability of customers to pay or repay loans, reflecting the variability of borrowers' income. From the perspective of enterprise's operating ability and profitability, enterprises with good operating performance, strong capital strength and reasonable cash flow will show good solvency.
(3) Capital
Enterprise capital is often a decisive factor to measure an enterprise's financial strength and loan amount. The abundant enterprise capital shows that the enterprise has a huge material foundation and anti-risk ability. Enterprise capital includes all net assets and intangible assets. It can be obtained through financial ratio analysis and is regarded as a good indicator to predict the possibility of bankruptcy.
(4) mortgage
Also known as asset mortgage, it means that an enterprise uses its assets to guarantee its promised payment. In case of default, the creditor has the right to claim the items mortgaged by the borrower. The higher the priority of the creditor's right, the higher the market value of the related collateral, and the lower the risk loss of arrears. With mortgage guarantee, credit assets are guaranteed. For customers with no credit record or bad credit record, they need to take certain legal assets as collateral. Credit rating must analyze whether the guarantee and mortgage procedures are complete, whether there are problems in the valuation and sale of collateral, and whether the guarantor's reputation is reliable.
(v) Economic situation
That is, the economic environment refers to the general trend and business cycle of social and economic development that can affect the solvency of enterprises, as well as the special development and changes in some regions or fields. This is an important factor that determines the loss of credit risk, especially those industries that are determined and affected by the cycle. For example, durable goods departments are more susceptible to cycles than non-durable goods departments. Credit rating must analyze the economic environment, cycle, development prospects, industry development trends and changes in market demand, and predict its impact on the operating efficiency of enterprises.
Second, Kimberly element.
In other words, the borrower analyzes the credit status of the enterprise from the following seven aspects. Campari is:
C character (debt record character)
Solvency (qualification)
M profitability (profit)
Purpose of loan (purpose)
Loan amount (amount)
R repayment method (repayment ability)
Loan mortgage (also known as security insurance)
(1) Moral quality
Refers to whether the borrower has the qualification to conclude a loan contract with the bank. For example, bank loans to minors have no legal effect. Similarly, the contracting director must
Activities must be carried out within the scope authorized by the articles of association, otherwise it is invalid.
(2) Solvency
Refers to the borrower's technical, management and financial strength; It can also refer to whether an enterprise can monitor business risks and improve asset liquidity, thus creating enough cash flow to repay debts.
(3) the purpose of the loan
The purpose of the borrower's loan to the bank should be clear and acceptable. If a loan is used by an enterprise to repay the existing debts of a supplier, there may be serious problems in the liquidity department of the enterprise.
If an enterprise applies for loans to support the expected development of its business, this should be regarded as an acceptable reason for allowing loans. Because such enterprises not only use the normal credit payment provided by suppliers, but also have more credit demand. However, loans cannot be used to meet the excessive expansion of business. If it is reasonable to apply for a loan to win new orders, then the same enterprise holds five new orders at the same time, and the lender should be vigilant: Can it cope with the rapid development of business?
(4) loan amount
The loan scale must be consistent with the use of funds, and the loan amount must also meet the needs of enterprises. The cost of borrowing funds should match the return on equity.
(5) Solvency
Knowing the source of the enterprise's later funds is helpful to judge the borrower's repayment ability. Repayment ability is very important. Lenders should examine their repayment ability by analyzing the cash flow after investment, not their future profitability. For borrowing enterprises, the main source of funds to repay loans should be the investment projects of loans. The contract should also specify the repayment period: one-time repayment or installment repayment?
(6) Safety
"Safety" here refers to mortgage guarantee: when the loan cannot be repaid, the bank can still guarantee the safety of its assets. When considering the loan request, its mortgage collateral is definitely not the first consideration; However, if mortgage collateral is considered, its price should be equivalent to the loan amount plus sufficient price difference, and mortgage collateral should be easy to evaluate, realize and obtain.
Three. 5W element
5W method focuses on the following five aspects of enterprise credit evaluation:
Who (who is the borrower and what is the specific situation)
Why (why borrow money, what is the purpose)
What (what is the guarantee and what is the value of the collateral)
When (when to repay)
How (repayment method)
Domestic rating usually advocates five factors analysis of credit status, namely safety (insurance), profitability, potential, liquidity and reducibility. Among them, security is the foundation of credit, profitability is the guarantee of credit, growth is the driving force of credit, liquidity is the performance of credit, and productivity is the condition of credit. Through five-factor analysis, the credit status of customers is objectively rated.
The 5C factor analysis reflects the main factors that determine the credit rating, and provides a preliminary basis and framework for establishing the customer credit rating index system. Specific items reflecting credit rating elements are generally expressed by indicators, which can be screened by analyzing the business process of enterprise credit management.
The credit risk of an enterprise exists in every business link generated by the transaction, and it is necessary to comprehensively manage and monitor the whole transaction process. Generally speaking, this process can be divided into three parts: pre-control, in-process control and post-control. Pre-control refers to the review of customers and the selection of credit conditions before formal transactions (before signing or delivery); Process control refers to the control of the customer's credit limit during the transaction; Post-event control refers to the management of accounts receivable and the effective treatment of arrears. Specifically, there are six business links that must be noted:
1. Contact customers-select customers, including the whole process from meeting customers for the first time to maintaining old customers.
2. Negotiation-determine the credit terms. Including the initial negotiation with customers until the two sides reach an agreement, a direct credit management goal in the negotiation process is to determine the credit conditions (credit term/line). Credit forms and payment methods.
3. Sign a contract-seek creditor's rights protection. Contract is the basis and foundation of credit, and every item in the contract may become the cause of future credit problems; At the same time, in order to ensure the recovery of the payment, certain means of creditor's rights protection are often adopted, such as guarantee, insurance and factoring.
4. Delivery-payment tracking. After the accounts receivable are formed, dynamic monitoring must be carried out to ensure timely recovery.
5. Due collection-collection of early arrears. The phenomenon of overdue payment not only affects the capital turnover of enterprises, but also may cause hidden dangers of long-term arrears. Therefore, it is a difficult problem for enterprises to properly urge the payment for goods in the early stage of default and maintain a good customer relationship.
6. Collection failed-the crisis situation was buried.
Strengthening the monitoring of the above six business links is the key for enterprises to guard against credit risks and reduce bad debt losses. According to the characteristics of the six business aspects of the business environment, the company provides subdivided indicators for the establishment of the rating index system.
According to the analysis of 5C elements and five factors of customer credit level, through the analysis of the above-mentioned main business links where credit risks may occur, we can establish a customer credit rating index system mainly from the following four aspects:
Before deciding whether to sign a promotion contract, an enterprise should first check the past transactions with customers. The specific indicators mainly include: past transaction volume, payment term, payment attitude, and the reputation and business reputation around customers. This indicator reflects the historical credit of customers as a whole, and will generally be maintained if there is no major change. Secondly, it is necessary to analyze the current operating conditions of customers. It mainly refers to the scale and strength of customers, the superficial impression of our employees on customers, the quality of enterprises and whether there are any major events at present. Third, it is necessary to calculate for the customer how much profit he has made from the contract, whether he can profit from it and how much profit he has made. Only when he makes money will he be willing to repay. Specific inspection indicators include: market competitiveness, market development ability and marketing channels, main business and capital status, sales revenue and management level. Fourth, we should also consider from a long-term perspective and analyze the development potential of customers and whether there is a need for long-term cooperation. Specific indicators include the development potential of major products, the position and influence of customers in the industry.
Considering that the financial information of some customers is not easy to obtain, the financial situation analysis is listed separately. After the financial data of the other party can be obtained and shrunk, the following four indicators are selected for auxiliary rating.
Current ratio = current assets/current liabilities
Quick ratio. (Current assets-inventory)/Current liabilities ...................... b
Ratio of short-term liabilities to net assets = current liabilities/net assets .................................. C.
Debt to net assets ratio = total debt/net assets ........................... n
Credit rating value v = a+b-c-d
Among them, A and B represent the liquidity of customers' assets, and C and D represent customers' capital structure. The higher the liquidity ratio, the higher the rating value, the higher the capital structure ratio and the lower the rating value. According to the rating value V, the credit status of customers can generally be given.
Based on the above contents, the index system is finally determined as shown in Figure 4-3, and the scoring standards of specific indicators are shown in Table 4- 10. (1) According to the customer's credit rating.
Credit rating index system diagram
In this indicator system, the emphasis is on qualitative indicators, because it is generally difficult for enterprises to obtain customers' financial data under the buyer's market conditions, so only front-line personnel mainly rely on their accumulated experience in frequent contact with customers to judge customers' credit level. If you can get the financial data of customers, you can make up for the deficiency of qualitative judgment by combining the results of qualitative judgment and get a more reasonable rating. On the other hand, America's credit rating system is the most developed in the world. Several famous American credit rating companies believe that credit analysis is basically qualitative analysis. Although they also attach importance to some quantitative financial indicators, the final conclusion depends on the subjective judgment of credit analysts and is finally decided by the rating Committee. Editor: Zhang zhen