First, why should enterprises credit rating customers? In the management consulting work, we found that at present, the management classification of enterprises to customers is mostly based on sales targets. For example, according to the size of the order (large, medium and small customers), according to the different products sold, according to the different sales areas and so on. Some enterprises have different standards in customer classification, and various classifications are intertwined, which leads to management confusion. Therefore, we realize that enterprises should establish a simple customer credit classification method for customer credit management and business decision-making, so as to implement scientific credit management. Enterprises to carry out customer credit rating, at least have the following functions.
1. Credit rating is used for customer selection and transaction decision.
Which customers are the big customers that enterprises really need? If we only divide it according to the order quantity, there will be such a problem: in practice, customers with large orders are also "high-risk customers" who cause serious payment arrears. Only customers with sufficient solvency are valuable big customers of the enterprise.
Therefore, the customer's credit rating provides a very important standard for the enterprise's customer development and transaction decision-making, that is, to measure the value of a customer, we should not only look at its order volume, but also pay attention to its development potential and credit value (solvency). This is very meaningful to improve the customer development and selection of the sales department. There are too many credit risk losses in some enterprises, and a considerable part of the reason is that salespeople have problems in customer selection and evaluation criteria: they only care about sales volume and ignore solvency.
2. Credit rating is used for risk management of customers.
In practical work, the risk control of customers and the management of accounts receivable recovery are often based on the credit risk of customers (or debtors). Therefore, customer credit rating has become an effective management tool. For example, the regular credit risk supervision of customers is usually based on the credit rating of customers. Generally speaking, for those high-risk customers, enterprises must conduct special credit surveys. For the collection of overdue accounts receivable, it is often necessary to formulate different collection policies according to the credit rating of customers.
3. Credit rating is the basis of enterprise credit policy formulation.
When enterprises use credit instruments as a competitive means to expand market sales, does it mean giving all customers the same credit policy? Some enterprises do this and adopt a one-size-fits-all approach: all customers can sell on credit and enjoy the same preferential conditions. As a result, although sales on credit have achieved the purpose of promotion and the sales volume has increased rapidly, the amount of payment occupied and owed by customers is equally huge, and this promotion method is not successful.
Therefore, customer credit rating plays a very important role in the formulation and implementation of enterprise credit policy.
Two. Risk control based on customer credit rating
In practice, we feel that the most important job of classifying customers' credit rating is to make the definition and division of customers' credit rating simple, clear and scientific, which is convenient for practical management and business operation. Among them, there are three aspects that need careful consideration:
First, the meaning of each level must be clear, in line with the actual situation of customer management in this enterprise, so that all personnel within the enterprise can understand it.
Second, the boundaries between different levels should be as clear as possible, and there should be no ambiguity. If it can be divided into one level and another, the rating will lose its seriousness and authority.
Third, every credit rating should have practical guiding significance. The credit rating of an enterprise is different from the credit service provided by a third party, which emphasizes the purpose. The credit rating given by an enterprise to each customer includes the basic principles of transaction decision-making and risk control.
The following is to recommend a set of customer credit rating methods to readers, namely A, B, C and D4 rating methods. This method has strong applicability and scientificity, and it is the most commonly used method in enterprise credit management at home and abroad.
Basic definition of customer credit rating
Risk management of 1.A customers
A-level customers are defined as "low-risk" customers, and are defined as risk-free customers in some foreign textbooks. The author thinks that the definition of "low risk" is more appropriate, because there are almost no risk-free customers, and even an "aircraft carrier" like Enron in the United States may go bankrupt.
This level of customers are generally strong and large-scale, and they have paid in time in previous transactions with the enterprise without default. This kind of customers have very good long-term trading prospects, great order potential and good reputation, so they can trade with them with confidence, and the credit line is not subject to too many restrictions. This kind of customer is the most ideal object for enterprises to sell on credit, and enterprises should adopt a more relaxed policy of selling on credit to avoid losing such customers as much as possible; Establishing regular contact and communication is a necessary means to maintain good business relations with such customers; At the same time, enterprises should also know the situation of these customers regularly as a normal information communication.
2. Risk management of B-level customers
Class B customers are defined as "acceptable risk" customers. The so-called acceptable risk means that the degree of risk generated by such customers is within the scope allowed by the enterprise. This is a relative concept. What kind of risks are acceptable to enterprises? It depends on the needs of the enterprise. Generally speaking, acceptable risks include tolerating customers' short-term or goodwill payment default, but customers must ensure adequate solvency.
This level of customer transactions are of great value, with no big shortcomings and no signs of bankruptcy. There may be temporary cash flow problems in operation, which will delay payment, but there is no problem with solvency at all. Such customers can engage in credit business for a long time, but they must conduct transactions in strict accordance with the credit line.
Enterprises should carry out necessary credit control for such customers, basically based on the credit limit; This kind of customers are often relatively large, and enterprises should strive to establish good customer relations with them and constantly increase their understanding; It is necessary to collect the information of such customers on a regular basis, especially paying attention to the changes in their business conditions and product market conditions.
3. Risk management of C-level customers
Class C customers are defined as "high-risk" customers. Its basic meaning refers to the poor credit ability or behavior of customers (or incomplete credit information) relative to the requirements of enterprises. Generally speaking, such customers have had bad credit performance in the transaction with the enterprise, such as serious payment default. For some new customers, because they just started trading, they get less information and don't know much about their own credit, so they should also fall into this category.
The risk and transaction value of class C customers to enterprises are often uncertain and contingent. On the one hand, there are risks, but sometimes there are certain transaction values, and enterprises cannot give up easily. This kind of customer is difficult to manage. We suggest that strict credit limit should be imposed on Class C customers first, and some additional guarantee conditions should be sought when necessary. In addition, we should also consider the actual transaction value and cooperation potential. If the value of this aspect is also small, then try not to sell on credit, mainly in cash. If the transaction value is high, the enterprise can consider taking more risks, but at this time it needs to conduct a deeper credit investigation (it needs to spend some investigation fees).
In addition, if some new customers are classified as Class C, credit management should be initially established by starting several small transactions. If there is potential for long-term cooperation, it should be gradually brought into the scope of B-type customer management on the basis of sufficient information after many transactions.
4. Risk management of D-level customers
The definition of D-class customers is "unacceptable risk" customers, and its meaning is very clear, that is, enterprises should never carry out credit sales business for such customers. Generally speaking, such customers have been seriously in arrears with this enterprise, and the transaction value is not great.
For such customers, enterprises should try their best to avoid dealing with them, and even if there are, they should mainly settle in cash or ask for advance payment, and should not use credit; Such customers should not be the focus of enterprise customer resources, and some can even give up; Enterprises can keep the information of these customers, but do not need to invest too much manpower and financial resources to collect the information of these customers. In the case of urgent need to know, they can entrust a professional service organization to conduct an investigation.