Company Business Rating Report – Background Information

Providing goods on consignment to a retailer, providing credit to your customers, prepaying your suppliers, having financial dealings with a new business are some of your business activities that could expose you to credit risk.

To eliminate risk is to close down a business. Risk creates business opportunities. There is no expected return without some risk taking but the key here is to take calculated risks. Offering attractive credit terms may increase your competitiveness but it will also expose you to higher credit risks. Several factors influence your decision to partner with a third party when you want to expand your company. To minimise the risk and turn it in to a positive business advantage, assessing and monitoring counterparty credibility has become a necessity.

MNK RISK CONSULTING Company Business Rating Reports enable you to check a third-party company, allowing you to make quick and risk-informed decisions about potential customers, suppliers and business associates.

 

Check your customers’ financial standing and repayment ability

Extending credit to customers or business partners can help boost sales and open doors to new revenue sources. But extending credit also comes with its fair share of credit risks.

Do you know the financial strength of your customers? Are they able to repay or fulfil other contractual obligations towards you? Do they go through an unexpected change (e.g. change of management)? Does their industry face a bad year?

Know who you are dealing with:

• By checking your customers
• By checking your suppliers
• By checking the people behind a business

Get paid on time:

• By knowing if a company is financially stable
• By obtaining a company’s credit rating
• By finding out how quickly a business pays its invoices

Know:

• How much credit you can extend to your customers, suppliers, business associates
• How much money could you possibly loose in the case of default to their contractual obligations.

Check and monitor any Cyprus and Greece companies.

Qualify prospects and suppliers and set realistic credit limits

Check to see if existing or prospective customers and suppliers of yours have any County Court Judgments following legal actions taken by their creditors.

 

Check your suppliers’ stability and reliability

Your suppliers can affect the quality of your products/services and your ability to deliver your promises. If a supplier lets you down, either by not delivering on time or delivering inferior quality products, you let your customers down. This can damage your business’ reputation and delay important payments. Choosing a supplier without seeing their business report could cost you valuable customers, time and money.

Getting our standardised Company Business Rating Reports to check suppliers helps establish their stability and ability to provide a quality service, in both the medium and long term. Choosing a reliable, financially stable supplier means that you can be confident you can always fulfil commitments to your customers.

 

Why Us?

We provide you with:

• Easy-to-Read reports
• Comprehensive picture of credit worthiness of your business partners and future clients
• Freshly Investigated Reports based on accurate and reliable information coming from several cross-checked sources
• Quick Delivery Time
• Cost-effective Reports
• Unparalleled Report Quality
• Worldwide Delivery

Order on-line a Company Business Rating Report for any industry sector. Call or email us alternatively if you prefer.

We have been developing credit risk rating methodologies and credit risk analytics for more than 20 years. We have one of the most predictive credit risk measurement models in the industry, which lets you easily determine the creditworthiness of your counterparties. Our credit models can help you predict business credit risks and identify likely failures within the next 12 months. And more…..see below.

• Our Company Business Rating Reports provide the most complete and in-depth analysis of a business’ credit information, whether it’s your own business or a potential customer. Forward looking and good predictive power of corporate credit behaviour.
• Payment Performance Information.
• See payment trends of your customers & suppliers – e.g. number of days beyond terms they pay invoices.
• Dedicated Customer Support.
• Dedicated Account Manager – plus support via phone and email.
• Always the latest available data.
• Cashflow management.

Bespoke Advisory

Getting our standardised Company Business Rating Reports provides you with practical easy-to-understand information which would help you to check customers and determine whether you really want to extend credit and ‘invest’ in new business relationships.  In addition to our standardised Company Business Rating Reports, we can also offer you bespoke advisory.

Some business factors to consider:

• Do you actually need to extend credit to new customers or business associates? Or are you able to ask them to pay you in cash until you get more confidence in your business relationship with them? Same for new suppliers and business providers; can you ask them to consider payments after goods/services delivery instead of pre-paying?
• Do you accept cheques? Most people don’t think of accepting cheque as extending credit, but you do take a credit risk when you accept a cheque for payment. If your customer doesn’t have money in his or her bank account to cover the amount of the cheque, your customer’s bank will “bounce” the cheque (return it to you unpaid).
• Will you offer credit terms? “Credit terms” means the amount of time you give your customer to pay your bill. The type of business that you operate will help determine the type of credit terms that you offer.
• How much credit will you offer? A prudent approach would be to offer a relatively low amount of credit at first; if your customer pays you as agreed over a period of time, you can increase that customer’s credit limit.
• How will you decide who gets credit? You may decide that you will offer credit terms only to business customers, and require individuals/ consumers to pay by cash or credit/debit card. Or require new business customers too, to pay by card. Set up guidelines to follow, but remember to use common sense. Usually, your instincts about a particular situation are helpful and often necessary. Not always sufficient though!
• What is your customers’ repayment ability and are there any issues they or their industry sector is facing?
• A good company with strong management as well as a solid credit history could also fall into trouble because of systemic and business environment adverse factors, such as an economic downturn (e.g. high inflation) or a pandemic during which market demand or liquidity may suffer this way affecting the rated company’s sales. We shall advise you on industry sector economic trends and how these could affect your customers, suppliers, other business partners and ultimately their financial obligations towards you.

How it works

Order a Company Business Rating Report is pretty straightforward. You just fill-in the Input Form available on line by providing the following:

• Name, registration number and country of registration of the company for which you seek a Business Rating Report
• Selecting of the report type (two types of reports available to choose from)
• Your contact details (full name, company name, country of residence, telephone number and email address).
• Acknowledging that you have read the terms and conditions.

Upon clearance of payment, we start work. The ordered Company Business Rating Report shall be sent to the email address you provided us within 4-7 business days depending on the report type.

Your identity will not be disclosed to the rated company.

Two Types of Company Business Rating Reports

The COMPREHENSIVE report covers information on:

• Business identification – see a business’ age, registered number, registered office, website address, telephone number and industry type.
• Credit Rating– get a full credit assessment that includes a risk score for the last 12 months and a risk summary.
• Recommended credit amount.
• Public record information– find out any County Court judgments (CCJs), legal notices, mortgages, charges and satisfactions and consumer credit licences.
• Financial information– get a good overview of company/business financials with a detailed balance sheet, cash flow items, profit and loss, company ratio and disclosure items and an accounts summary showing total turnover, profit margins, total assets and shareholder funds.
• Directors’ information– information on company directors includes their name, age, nationality and date appointed.
• Shareholders’ information.
• Credit risk analytics – find out how much could you lose in the case of ‘borrower’ or obligor default based on the Recommended Amount. (See Forward Looking Credit Risk Analysis below.)

We also offer information on Anti-Money Laundering (“AML”) risks associated to the rated company, its shareholders and directors. This additional information is provided with our PREMIUM report.

 

Forward Looking Credit Risk Analysis

We evaluate the risks of rated entities and structures under a variety of scenarios to ensure rating stability. Scenarios are developed based on potential risks your customer/supplier/counterparty may encounter through plausible stress scenarios.

The Baseline Scenario relies on actual latest available financials combined with recent operating history. It produces one year forward financial projections which are rather conservative.  

A Stress Scenario is one that may cause the rating to be downgraded by at least one notch over the next year. This helps you determine the amount of headroom in the rated company’s financial standing and informs on the likelihood of a change in rating Outlook. Financial projections are based on the counterparty’s current and historical operating and financial performances, its strategic orientation and analysis of wider industry trends. We consider any possible fundamental shift in financial policy or a structural change in the operating environment over the (one-year) time horizon under review which may impact adversely the credit rating. A recession for example may lead to a more significant credit downgrade if the rated company is vulnerable because of either lower ongoing cash-flow expectation, taking significant new leverage to offset cash shortfalls during the recession, fundamental shift in the business model risks during the recession, or transformational changes in market demand.

What the above means? We provide you with forward looking estimates of the annual Credit Value at Risk, expected shortfall and other credit risk analytics. One set for the Baseline Scenario and two sets for the Stress Scenarios. This way you have a holistic view which enables you to weigh different risk factors before you make a business decision.

 

Company Business Rating Reports – Two types, which is right for you?

1.   COMPREHENSIVE Report– Perfect for most usage levels

Get information on the following:

• Business profile
• Credit rating
• Recommended credit amount
• Three years account summary accompanied by full financial information
• Financial Analysis with Key Ratios historical comparatives
• Parent and ultimate holding companies
• Directors
• Ownership – Group structure & shareholders
• Industry Sector analysis & Macroeconomic sectoral indicators
• Country Risk
• Credit Risk Analytics (incl. loss rates)

2.   PREMIUM Report – AML Risk Assessment Add-on

Additionally, to the COMPREHENSIVE Report, with our PREMIUM report we conduct an AML Risk Assessment with information on the following:

• Check if the Company is listed under Enforcements, Sanctions list, SOE (State Owned Entity) or Adverse Media (if anything detrimental was found listed against the Company).
• Whether shareholders are subject to any Enforcements, Sanctions, they are PEPs / SOE, or related to any adverse media
• Whether directors and secretary are subject to any Enforcements, Sanctions, they are PEPs / SOE, or related to any adverse media
• Country Court Judgement

Order your Company Business Rating Report now.