An enterprise credit report is an instrument that reflects the economic activities and credit status of an enterprise, which includes basic information of the enterprise, credit information, public record information, and other information reflecting its credit status. Corporate credit reporting is a consulting firm that provides market research, investment advice, and,IPOOne of the essential reference materials for listing consulting and other services. By querying and analyzing the credit report of the enterprise, the consulting company can understand the target enterprise's operating status, financial status, debt status, legal disputes, administrative penalties and other information, so as to assess its market prospects, investment value, listing potential and other aspects of the situation.

However, in actual use, the enterprise credit report is not perfect, there are some potential traps, which may affect the consulting company's judgment and evaluation of the enterprise's credit status, leading to wrong decisions or adverse consequences. According to Shangpu Consulting Group Co., Ltd. ("Shangpu Consulting")2Over the years in industry research, market research, investment and financing consulting,IPOProfessional experience and customer cases in the field of listing consulting, this article will analyze the common pitfalls in corporate credit reporting, and how consulting firms can identify and avoid these pitfalls to improve the efficiency and value of the use of corporate credit reporting.

1. false information

False information refers to the enterprise intentionally or unintentionally providing untrue or inaccurate information when applying for or updating its credit information, or tampering with or falsifying its existing information in order to mislead the inquirer or cover up the truth. False information may involve basic information, financial information, debt information, legal disputes and other aspects. For example, in order to obtain more loans or investments, some enterprises may exaggerate their revenues or profits, or conceal their existing debts or guarantees; in order to avoid legal liability or administrative penalties, some enterprises may conceal or deny their involvement in litigation or arbitration, or forge their business licenses or qualification certificates.

False information is one of the most serious traps in corporate credit reporting, which may seriously damage the interests and reputation of consulting firms, and even lead to legal disputes. Therefore, when consulting companies use corporate credit reports, they must be strictly verified and reviewed to eliminate the possibility of false information. Specifically, the consulting firm can take the following measures:

Obtain corporate credit reports from formal credit agencies or platforms, such as the People's Bank of China Credit Information Center, China Credit Insurance Credit Platform, etc., and avoid using unreliable sources or channels.

Check and compare the information in the enterprise's credit report one by one, such as with other materials provided by the enterprise, public financial statements, industrial and commercial registration information, court judgments, etc., and find any inconsistencies or contradictions, to promptly ask the enterprise or request an explanation.

In-depth investigation and verification of important information in corporate credit reports, such as field visits, telephone visits, Internet searches, etc., to obtain more first-hand or third-party information to supplement or confirm corporate credit reports Information.

Further analysis and evaluation of the suspicious information in the enterprise credit report, such as through the use of professional financial analysis, risk analysis, industry analysis and other methods, the enterprise's operating status, financial status, debt status and other reasonable and sustainable judgment, found any abnormal or unreasonable, to verify or require timely explanation to the enterprise.

In the case of Champ Consulting, for example, in providing a new energy vehicle manufacturerIPOAt the time of listing advisory services, Champ Consulting found that the enterprise claimed in its applied corporate credit report that it was2019The annual revenue is20billion yuan, while in its publicly disclosed financial statements, only10billion yuan. After investigation and verification, Shangpu Consulting found that when applying for a corporate credit report, the company deliberately combined the revenue of its subsidiaries and affiliated companies into its own revenue to exaggerate its scale and profitability. Shangpu Consulting promptly questioned the company, asked it to modify or withdraw its false information, and explained and apologized to the relevant departments. In the end, the company was rejected by the SEC because of its false information.IPOApplication.

2. outdated information

Obsolete information means that some information in the enterprise credit report has lost its timeliness or is inconsistent with the current situation, but has not been updated or deleted in a timely manner. Obsolete information may involve basic enterprise information, financial information, debt information, legal disputes and other aspects. For example, some enterprises fail to declare or update their basic information to the credit reporting agency or platform in time after major changes (such as equity changes, senior management changes, address changes, etc.); Some enterprises fail to apply to the credit reporting agency or platform to delete or modify their debt information in time after repaying or transferring their debts; Some enterprises solve or cancel their legal disputes, failure to apply to credit agencies or platforms to delete or modify their legal dispute information in a timely manner; some companies fail to declare or update their financial information to credit agencies or platforms after completing or terminating their major projects or contracts.

Outdated information is another common trap in corporate credit reporting that can lead to misjudgment or underestimation of a business's creditworthiness by consulting firms and miss out on good cooperation or investment opportunities. Therefore, when consulting companies use corporate credit reports, they must update and supplement them in a timely manner to ensure the timeliness and accuracy of their information. Specifically, the consulting firm can take the following measures:

When obtaining a corporate credit report, pay attention to the time it was generated or updated, try to choose the latest version, and avoid using outdated versions.

When analyzing corporate credit reports, pay attention to comparing the differences between their information and the current situation, try to obtain the latest information, and avoid using outdated information.

When using corporate credit reports, pay attention to tracking changes in their information, try to update or supplement their information in a timely manner, and avoid using incomplete information.

When evaluating an enterprise's credit report, pay attention to the validity period of its information, try to adjust or correct its information according to the actual situation, and avoid using information that is not applicable.

In the case of Shangpu Consulting, for example, when providing market research services for an e-commerce platform, Shangpu Consulting found that the enterprise showed its2019The annual revenue is50billion yuan, while in its publicly disclosed financial statements, only30billion yuan. After investigation and verification, Champ Consulting found that the enterprise used its2018financial data for the year without timely updating its2019Annual financial data. Shangpu Consulting promptly pointed out to the enterprise, asked it to update or reapply for its corporate credit report, and explained and apologized to the relevant departments. Eventually, the company was fined by the market regulator for its outdated information.

3. missing information

Missing information refers to the lack of some important or necessary information in the enterprise credit report, which makes the searchers unable to obtain complete or comprehensive enterprise credit information. Missing information may involve basic enterprise information, financial information, debt information, legal disputes and other aspects. For example, some enterprises fail to provide complete or detailed basic information (such as registered address, contact information, shareholder structure, etc.) when applying for or updating their credit information; some enterprises fail to provide complete or detailed financial information (such as income statement, balance sheet, cash flow statement, etc.) when applying for or updating their credit information; some enterprises fail to provide complete or detailed financial information when applying for or updating their credit information, failure to provide complete or detailed information on debt (e. g., creditors, amount of debt, term of debt, interest rate of debt, etc.); some enterprises fail to provide complete or detailed information on legal disputes (e. g., subject matter of litigation, progress of litigation, outcome of litigation, etc.) when applying for or updating their credit information.

Missing information is another common trap in corporate credit reporting, which may cause consulting firms to be unclear or unaware of the creditworthiness of the business, affecting their trust or willingness to cooperate with the business. Therefore, when consulting companies use corporate credit reports, they must be fully supplemented and perfected to ensure the integrity and comprehensiveness of their information. Specifically, the consulting firm can take the following measures:

When obtaining a corporate credit report, pay attention to the types and content of information it contains, try to choose the most comprehensive version, and avoid using incomplete versions.

In the analysis of enterprise credit report, pay attention to find its missing information items and content, try to obtain more information, avoid the use of insufficient information.

When using a corporate credit report, pay attention to supplementing its missing information items and content, try to improve its information, and avoid using inaccurate information.

When evaluating an enterprise's credit report, pay attention to weighing the impact of its missing information items and content on its credit evaluation, try to adjust or revise its credit evaluation according to the actual situation, and avoid using unreasonable credit evaluation.

In the case of Shangpu Consulting, for example, when providing investment advisory services to a medical device manufacturer, Shangpu Consulting found that the company did not provide its financial information in the corporate credit report it applied. After investigation and verification, Shangpu Consulting found that when applying for a corporate credit report, the company claimed that its financial information was a trade secret and was unwilling to provide it to credit agencies or platforms. Shangpu Consulting makes a request to the enterprise, explains the importance and necessity of its financial information to investors, and ensures the confidentiality and security of its financial information. Ultimately, the company agreed to provide its financial information to Champ Consulting and apply to the credit agency or platform to supplement or modify its corporate credit report.

4. inconsistent information

Inconsistent information refers to the difference or contradiction between certain information in the enterprise credit report and the same or related information obtained from other sources or channels. Inconsistent information may involve basic enterprise information, financial information, debt information, legal disputes and other aspects. For example, when some enterprises apply for or update their credit information, the basic information provided is inconsistent with the basic information in the industrial and commercial registration information or other official documents; when some enterprises apply for or update their credit information, the financial information provided is inconsistent with the financial information in the publicly disclosed financial statements or other financial documents; when some enterprises apply for or update their credit information, the debt information provided is inconsistent with the debt information in creditors or other debt documents, and some enterprises provide legal dispute information that is inconsistent with the legal dispute information in court judgments or other legal documents when applying for or updating their credit information.

Inconsistent information is the last common trap in corporate credit reporting, which may lead to confusion or confusion among consulting firms about the creditworthiness of the business and affect their judgment or assessment of the business. Therefore, when consulting firms use corporate credit reports, they must carefully check and compare them to ensure the consistency and reliability of their information. Specifically, the consulting firm can take the following measures:

When obtaining a corporate credit report, be careful to check its source or channel, try to choose the most reliable source or channel, and avoid using inconsistent sources or channels.

When analyzing an enterprise's credit report, pay attention to comparing its information with the same or related information obtained from other sources or channels, and try to choose the most consistent information and avoid using inconsistent information.

When using corporate credit reports, pay attention to verifying the differences or contradictions between its information and the same or related information obtained from other sources or channels, try to explain or eliminate these differences or contradictions, and avoid using unreliable information.

When evaluating an enterprise's credit report, pay attention to the consistency and reliability of its information with the same or related information obtained from other sources or channels, and try to adjust or correct its information according to the actual situation to avoid the use of inaccurate information.

In the case of Shangpu Consulting, for example, when providing industry research services for an education and training institution, Shangpu Consulting found that the enterprise showed its2019The annual revenue is5billion yuan, but on its official website, it shows2019The annual revenue is8billion yuan. After investigation and verification, Shangpu Consulting found that the enterprise used the financial data under its financial accounting system when applying for the enterprise credit report, and used the financial data under its management accounting system on its official website. Champ Consulting asked the company and explained that the inconsistency of its financial data was troubling and misleading to industry researchers, and asked it to unify or explain the differences and reasons for its financial data. Ultimately, the company agreed to provide a detailed description of its financial data to Champ Consulting and to apply to the credit agency or platform to modify or supplement its corporate credit report.

Summary

Enterprise credit report is one of the important reference materials for consulting companies to provide various consulting services to customers. However, corporate credit reporting is not perfect, there are some potential traps, such as false information, outdated information, missing information, inconsistent information, etc., these traps may affect the consulting firm's judgment and evaluation of the credit status of the enterprise, leading to wrong decisions or adverse consequences. Therefore, when using the enterprise credit report, the consulting company must carry out strict verification and review, timely update and supplement, careful check and comparison, reasonable analysis and evaluation, in order to improve the efficiency and value of the use of the enterprise credit report.