The Purpose And Content Of The Credit Survey Of Corporate Credit Investigation
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The Purpose And Content Of The Credit Survey Of Corporate Credit Investigation

Enterprise credit investigation and corporate credit investigation are an important field in the risk control of commercial transactions. If you have a thorough understanding of credit investigation, you can avoid commercial risks in a big way. The value of credit risk control is also constantly emphasized in the corporate business risk control solutions we provide.


First, the basic concept

Enterprise credit investigation, that is, enterprise credit investigation, refers to a systematic investigation and evaluation of the credit status of relevant enterprises by specialized credit management or service organization, and opens credit information and data to the society in accordance with the principle of marketization, and provides credit reports.


Specifically, the credit survey can reflect the following information of the surveyed company:

  • Timely debt service for loans to the financial sector.

  • On-time payment to the supplier's accounts payable.

  • Guarantee of the quantity, quality, delivery time, etc. of products and services provided by customers.

  • Performance of employees' various rights and interests protection.

  • Is it possible to pay taxes on time and in full.

  • Compliance with national laws and regulations.

  • The authenticity of the company's financial statements.

  • The true reliability of corporate information disclosure.


Second, the emergence and development of corporate credit investigation

Credit risk arises when the creditor (creditor) loses credit or the trustee (debtor) evades his or her own liability.


The root cause of credit risk is the information asymmetry between market players who have economic relations. With the deepening of the social division of labor and the expansion of market credit transactions, corporate credit investigation agencies emerged as the times require, providing specialized information consultation and services for enterprises, financial institutions, and government departments.


Third, the purpose of corporate credit investigation

Enterprise credit investigation is beneficial to enterprises to grasp the basic credit situation of customers and partners. Specifically, it can help enterprises achieve the following purposes:

  • Helping companies find potential customers.

  • Helping companies establish business relationships with new customers.

  • Understand the latest situation of competitors to develop appropriate business strategies.

  • Update customer information when the information of the old customer exceeds a certain time limit.

  • When the customer changes the trading method, he can respond in time.

  • Reducing risks when there are major cooperation projects.

  • Handling various disputes with customers, including various litigations.


Fourth, the types of corporate credit investigation reports

  1. Simple enterprise credit investigation report

    The main contents include registration information and shareholder, company history, business scope, basic business conditions, number of employees, payment records, litigation records, simple financial data, major import and export customers, and profile of major operators.

    Uses: Help to judge the legitimacy of the company, understand the company profile, and apply to small trade or cooperation.


  2. Standard enterprise credit investigation report

    The main contents include: on the basis of the credit report summary, increase the company's organizational structure and affiliates, the quality of the company's leaders, detailed financial data and financial ratio analysis in the last year, business status and development prospects, corporate field trips, industry conditions, and enterprises. Information on foreign investment, bank transactions, etc., and gives an ideal credit line and credit rating.

    Uses: Help customers to understand the business management, financial status and solvency of the company, so as to determine the settlement method and credit limit, applicable to trade relations with the small transaction amount, frequent transaction times, relatively stable and continuous.


  3. Deep-level enterprise credit investigation report

    Main contents: detailed financial data and financial ratio analysis for more than 3 years, detailed industry development, comprehensive business information, basic industry conditions, analysis of corporate competitiveness, etc., as well as personal credits of major leaders, analysis of competitors, etc. It also gives a comprehensive assessment of the company, mainly in the evaluation of the company in a long historical period.

    Uses: Help customers to fully understand the production, operation and management of the company. It can be used as an important reference for expanding the business, winning customers or obtaining bank loans. It is also applicable to the feasibility analysis of large-scale investment projects and the decision-making of major business activities.


  4. Follow-up report on corporate credit investigation

    It is a regular update of certain parts of the credit investigation report. The updated part is often based on the current financial statements of the companies surveyed, including major changes in business operations, management, and shareholders, as well as changes in company address, telephone number, and legal person registration.


  5. Special credit investigation report

    According to the specific requirements of customers, in accordance with the relevant laws and regulations, the information not included in the "Simple Credit Report" and "Deep Credit Report" is provided to provide customers with special information on special credit information requirements, which is applicable to production and operation of enterprises. Different special credit information generated during the event is required.


  6. Significance of corporate credit investigation:

  • Expand the scope of credit transactions and improve transaction efficiency.

  • Encourage investment.

  • Prevent bank credit risk and reduce bank non-performing assets.

  • It is conducive to promoting the credit culture of honest management and enhancing the credit awareness of enterprises.

  • Conducive to the implementation of national macro-control policies.

  • Enterprise credit information model.


Corporate credit reporting models in Western countries:

Enterprise credit reporting system for fully market-oriented commercial operations. Commercial credit companies and recovery companies in the United States are typical performances. They all proceed from the purpose of profit and operate in a market-oriented manner. The United States has now formed a corporate credit reporting system with prominent companies such as the D&B Group.


The corporate credit information system with the central credit registration established by the central bank as the main body. European countries such as Germany and France mainly adopt this approach. The central bank establishes a central credit registration system mainly by the government to establish a national database network system. The information on credit processing is mainly used for internal use by banks, serving commercial banks to prevent loan risks and central financial supervision and monetary policy decisions.


The corporate credit information system formed by the membership-based credit reporting agency established by the banking association and the commercial credit reporting agency. Japan is a typical representative of such a system. For example, the Bank of Japan Association has established a non-profit bank membership institution, the Japan Personal Credit Information Center, which is responsible for collecting credits from consumers or businesses, and member banks can share information.


China's corporate credit information model

China is still a non-credit country. Drawing on the experience of credit reporting countries, establishing China's credit system and corporate credit information model is one of the current important tasks. As a developing country, the construction of corporate credit reporting systems in China cannot be formed solely by market forces.



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