Business Information - Credit Reports: Why require them?
Companies Profile Evaluation: according to Basel agreements, for credit requirement to banks and for granting credit of supplying (solvency degree), for evaluating the own trend and economic-financial situation and provide improvements, to establish business relationships, cooperation, partnerships, merger-acquisition, to evaluate competitors, their positioning on the markets and management. It is an invaluable tool for supporting strategic decisions but also the daily ones in an organization.
The service applies to start ups companies, micro-enterprises, medium, big sized companies; it includes collection of official and not official data, the analysis of the latest balance-sheets, indexes and ratios use and analysis to perform a final rating (an evaluation with a suggestion for granting credit of supplying or a guide related to the own credit request to banks)
CREDIT RISK ANALYSIS (CREDIT LINE OR CREDIT OF SUPPLYING):
Credit Risk Analysis: this is an important and efficient tool which allows companies a better management of the own liquidity level and the own resources financing themselves and therefore without asking for finance to banks or limiting its usage. The analysis of the balance-sheet of the company through indexes and ratios is only part of the enterprise evaluation, because many are the details which contribute to outline the whole picture of a company or of an enterprise. Moreover, this is an important tool because allows the enterprises to know better the own business partners, to have better relationships with them and to grant opportunities to both parties and to “ benefit ” one counterpart about products, services in advance and get the payment (the other counterpart) not immediately but any way potentially for sure even though later. The company’s evaluation for granting credit is an important tool for companies because it allows “ liquidity ” and dynamism. In business relationships a certain acquainted and trust which increase gradually are fundamental for business and for co-working together in peace, by using resources and energy in the own business more peacefully.
The analysis might also be applied to evaluate the own “ capability ” according to the Basel agreements to get credit by banks, in order to feed up the own enterprise through capital flows and power to invest in the own business. In this case the requiring enterprise is supported in those delicate and important steps about organizational, administrative and technical levels before applying to credit institutes so that the enterprise is better prepared to face with specific consulting meetings at banks by using specific and appropriate tools. The service is addressed especially to start ups, or new businesses, or to micro-enterprises, to self-employed, to those ones, who facing a(n) (re)organizion phase, need a guide, suggestions or a simple but technical support in (re)setting up the own business.
- Consulting especially concerning the organization, especially addressed to “start-ups” and small sized companies
- Consulting/Support in Business Plans drafts; the service is especially addressed to “start-ups”, micro-enterprises, medium sized companies
Basel agreements: (Basel I, Basel II, Basel III) Agreement through which the basic principles of companies’ profiles evaluation are defined for granting credits. Basel II is an international agreement of prudential vigilance which involves banks and their assets. Banks of supporting countries embracing the agreement must set aside proportionate capitals to the risk they undertake. Rating tools internationally codified by specific institutes are used. Further to auditing pillars of the Vigilance Authorities and real estates and assets requisites Transparency and market rules are fundamental. The first agreement in the final version dates back to 2004 but the origins go back to the 80s at Basel. The latest version is Basel III which reinforces the patrimonial requisites required by banks.
Credit supplying grant: the company’s profile evaluation is fundamental for granting credit of supplying. Basic requisites for companies’ profile evaluation further to official and qualitative data are undoubtedly balance-sheets for share-capital companies. The balance-sheet analysis and the usage of indexes and ratios allow the rating that is a suggestion, the company’s profile which should approximately correspond to the concern subject of analysis. The evaluation for granting credit of supplying is important for establishing a clear, trustful relationship between the parties and allows to finance themselves especially throughout those periods characterized by less liquidity
Balance-sheet analysis: this is an official economic-financial document annually drawn up by share capital companies and published for their internal and external stakeholders. Through the usage of indexes and ratios and of other tools an analysis is possible and, if compared to the previous years, it is possible to evaluate the business trend.
Indexes and Ratios: mathematic and financial tools which allow to analyze the balance-sheets and to verify their truthfulness and the business trend – it is better to get a comparison of the latest years