What is a corporate credit report?

Enterprise credit report is a kind of document reflecting the credit status of enterprises, and it is one of the basic tools for credit management and risk control of modern enterprises. It is a systematic, objective and authoritative report formed by a professional credit evaluation agency or credit reporting agency based on the information provided by the enterprise or publicly available information, through scientific methods and standards, the basic situation, operating status, financial status, payment records, bank information, public information, etc.

What is the role of corporate credit reporting?

Corporate credit reporting has the following main functions:

To provide enterprises with their own credit information, help enterprises understand their own strengths and weaknesses, improve their own credit level and competitiveness;

To provide enterprises with the credit information of the transaction object, to help enterprises choose reliable partners, to avoid or reduce the losses caused by the other party's default or fraud;

Provide credit information of market environment for enterprises, help enterprises grasp market dynamics and opportunities, and formulate reasonable business strategies and development plans;

To provide financial institutions with credit information on lending objects, to help financial institutions assess lending risks and to formulate reasonable lending policies and conditions;

To provide government departments with the credit information of the objects of supervision, help government departments strengthen the supervision and management of enterprises, and promote the construction of market order and social integrity.

How to obtain the enterprise credit report?

There are the following main ways to obtain an enterprise credit report:

Entrust or purchase from a professional credit rating agency or credit reporting agency. This method can obtain a more comprehensive, accurate and authoritative report, but it needs to pay a certain fee and may need to wait for a period of time;

ask the company itself or its partners. In this way, more timely and convenient reports can be obtained, but the consent or cooperation of the enterprise is required, and there may be risks of incomplete, untrue and unobjective information;

Inquire through the Internet or other public channels. This method can obtain more convenient and low-cost reports, but it requires certain information retrieval capabilities, and there may be risks of outdated, inaccurate, and inauthoritative information.

How to read the enterprise credit report?

Reading the corporate credit report requires a grasp of the following key information and risk points:

Basic enterprise information. This part of the content includes the company's registration information, legal representative information, shareholder information, executive information, etc., reflecting the company's legitimacy, scale, organizational structure, management and other aspects of the situation. It should be noted that whether there is a record of changes, whether there are related party transactions, whether there are litigation disputes, etc., these may affect the stability and credibility of the enterprise;

Business conditions. This part includes the enterprise's main business, business scope, business model, business location, business history, etc., reflecting the enterprise's industry position, market share, competitive advantage, profitability and other aspects of the situation. It should be noted that whether there is any business abnormality, whether there is any business license expiration or revocation, whether there is any business activity inconsistent with the registration information, etc., these may affect the continuity and compliance of the enterprise;

Financial position of the enterprise. This part of the content includes the enterprise's financial statements, financial indicators, financial analysis, etc., reflecting the enterprise's assets and liabilities, income and expenditure status, cash flow status and other aspects of the situation. It should be noted that whether there is an audit opinion or the signature of an accounting firm, whether there is a major financial adjustment or error correction, whether there is a financial risk warning or a statement of significant matters, etc., these may affect the authenticity and reliability of the enterprise;

Business payment records. This part includes the enterprise's payment habits, payment credit rating, payment default record, etc., reflecting the enterprise's ability to fulfill its contractual obligations and repay its debts. It should be noted that whether there are overdue payments or refusal to pay, whether there are multiple changes in payment methods or deferred payments, whether there is a list of dishonest or enforced persons, etc., these may affect the credit level of the enterprise and the willingness to repay the debt;

Corporate banking information. This part includes the enterprise's bank account information, bank credit information, bank transaction information, etc., reflecting the cooperative relationship and credit status between the enterprise and the bank. It should be noted that whether there are multiple bank accounts or multiple bank credits, whether there are overused credit lines or overdrawn account balances, whether there are frequent transfers or abnormal transactions, etc., these may affect the source and use of funds of the enterprise;

Corporate public information. This part includes all kinds of information registered or disclosed by enterprises in government departments or other institutions, such as tax registration information, social security registration information, industrial and commercial annual report information, intellectual property information, administrative punishment information, judicial judgment information, etc., reflecting the legitimacy, social responsibility, business transparency, innovation ability, violations of laws and regulations, etc. It should be noted that whether there are unpaid taxes or social security fees, whether the annual report is not submitted on time or the contents of the annual report are untrue, whether there is infringement of intellectual property rights or infringement of intellectual property rights by others, whether there are administrative penalties or judicial decisions, etc., these may affect the credibility and compliance of enterprises.

These are the main contents and risk points of the enterprise credit report, through the quick reading and analysis of these contents, we can have a general understanding and judgment of the credit status of the enterprise, and provide effective support and protection for credit transactions. Of course, the enterprise credit report is not static, with the business activities and market environment changes, the credit status of enterprises will also change, so it is necessary to regularly update and verify the enterprise credit report to ensure its timeliness and accuracy.

Champ Consulting Services Customer Cases

In order to better illustrate how to read a corporate credit report, the following is a brief analysis of a specific case of a Shangpu consulting service client.

Case 1: A manufacturing enterprise applies for a bank loan.

A manufacturing company applied for a loan from a bank because it needed to expand its production scale. In order to assess the repayment capacity and risk level of the enterprise, the bank requires the enterprise to provide a credit report for the most recent year. Shangpu Consulting, as the credit rating agency of the enterprise, generated an enterprise credit report based on the information provided by the enterprise and publicly available information, and analyzed the report as follows:

The basic information of the enterprise shows that the enterprise is a registered company.2018A limited liability company with a registered capital1000The legal representative is Zhang, the shareholders are Zhang and Li, and the executives are Zhang, Li and Wang. The enterprise has not had any change records, related party transactions or litigation disputes, indicating that the enterprise has a high degree of stability and credibility;

The operating status of the enterprise shows that the main business of the enterprise is the production and sales of all kinds of machinery and equipment, the business scope is the manufacturing, processing and sales of machinery and equipment and accessories, and the business model is independent production and sales. the business location is an industrial park in Chaoyang District, Beijing. The enterprise has a short operating history, but it has developed rapidly, and has a certain market share and competitive advantage in the same industry. The enterprise has not had any business abnormalities, business license expiration or revocation, or business activities inconsistent with the registration information, indicating that the enterprise has high continuity and compliance;

The financial position of the enterprise shows that the financial statements of the enterprise have been audited by an accounting firm and no significant financial adjustments or error corrections have occurred, indicating that the financial information of the enterprise has a high degree of authenticity and reliability. The financial indicators of the enterprise show that the total assets of the enterprise are2000RMB 10,000,000, with total liabilities800RMB 10,000,000, with net assets1200RMB 10,000,000, with an asset-liability ratio40%It shows that the enterprise has strong solvency and capital strength. The operating income of the enterprise is3000RMB 10,000, operating cost is2000Ten thousand yuan, the total profit is800Ten thousand yuan, net profit is600RMB 10,000, with a profit margin20%It shows that the enterprise has strong profitability and operational efficiency. The enterprise's statement of cash flows shows that the enterprise's net cash flows from operating activities are500RMB million, net cash flow from investing activities was-1000RMB million, net cash flow from financing activities was500The net increase in cash and cash equivalents was0RMB 10,000,000, with a closing balance100RMB 10,000, indicating that the enterprise has strong cash flow management capabilities and liquidity;

The business's payment records show that the business has good payment habits and a payment credit ratingAlevel, there has been no record of any payment default. The enterprise has not been included in the list of dishonest persons or the list of persons subject to enforcement, indicating that the enterprise has a high level of credit and willingness to repay debts;

The company's bank information shows that the company has only one bank account and one bank credit, and there has been no over-use of credit lines or overdraft account balances. The enterprise has not had frequent transfers or unusual transactions, indicating that the source and purpose of the enterprise's funds are clear and reasonable;

The public information of the enterprise shows that all kinds of information registered or disclosed by the enterprise in government departments or other institutions are complete and true, and there has been no non payment of taxes or social security fees, failure to submit the annual report on time or the contents of the annual report are untrue, infringement of intellectual property rights or infringement of intellectual property rights by others, administrative punishment or judicial judgment, It shows that the enterprise has high credibility and compliance.

In summary, Champ Consulting gave a high evaluation of the credit status of the manufacturing company and suggested that the bank can safely provide loans to the company.

Case 2: A trading company looking for suppliers

A trading company issued an RFQ to a number of suppliers because it needed to purchase a batch of clothing products. One of the suppliers made a lower offer, but a trading company did not know much about its credit status. A trading company commissioned a corporate credit report on the supplier to Champ Consulting and analyzed the report as follows:

The supplier's basic information shows that the supplier is a registered company.2020The registered capital of individual industrial and commercial households in10Ten thousand yuan, the legal representative and operator is Zhao. The supplier is in2021A change of record occurred in the year, expanding the scope of business from clothing wholesale and retail to clothing processing, production, design, etc., showing that the supplier has certain development potential and innovation capabilities. The supplier has not had any related party transactions or litigation disputes, indicating that the supplier has a high degree of stability and credibility;

The supplier's operating status shows that the supplier's main business is to produce and sell all kinds of clothing products, the business model is independent production and sales, and the business location is a clothing market in Shenzhen, Guangdong Province. The supplier has a short operating history, but has developed rapidly, and has a certain market share and competitive advantage in the same industry. The supplier has not had any abnormal business operation, expired or revoked business license, or business activities inconsistent with the registration information, indicating that the supplier has high continuity and compliance;

The financial position of the supplier showed that it was not possible to conduct a detailed analysis of its financial position because it was an individual business and was not required to submit financial statements. However, based on some of the financial information it provides and publicly available information, it can be preliminarily judged that the supplier has small assets, low liabilities, strong profitability and good cash flow;

The vendor's payment records show that the vendor's payment habits are average and that the payment credit rating isBlevel, there has been a record of payment default. The supplier is not included in the list of dishonest persons or the list of executed persons, indicating that the supplier has a certain level of credit and willingness to repay debts;

The supplier's bank information shows that the supplier has only one bank account and no bank credit. The supplier has not overused the credit line or overdrawn the account balance. The supplier has not had frequent transfers or unusual transactions, indicating that the source and purpose of the supplier's funds are clear and reasonable;

The public information of the supplier shows that all kinds of information registered or disclosed by the supplier in government departments or other institutions are complete and true, and there is no overdue tax or social security fee, failure to submit the annual report on time or the contents of the annual report are untrue, infringement of intellectual property rights of others or infringement of intellectual property rights by others, administrative punishment or judicial judgment, etc, It shows that the supplier has high credibility and compliance.

In summary, Champ Consulting gave a moderate evaluation of the supplier's credit status and suggested that a trading company should pay attention to the following points when cooperating with it:

Requiring more detailed and complete financial information from the supplier to allow for a more in-depth analysis and assessment of its financial position;

Require the supplier to provide its contracts and performance with other customers in order to understand its delivery capacity and quality assurance;

Require the supplier to provide samples or pictures of the clothing products it produces and sells in order to verify whether the quality and style of its products meet the requirements;

Require the supplier to provide relevant certificates or qualifications of the clothing products it produces and sells in order to verify the legality and safety of its products;

Require the supplier to provide a price list of the clothing products it produces and sells in order to compare whether its quotation is reasonable and competitive;

Require the supplier to provide its terms and conditions of payment in order to negotiate the terms and conditions of payment in the interests of both parties;

The supplier is required to provide its after-sales service and guarantee so that problems can be resolved and compensated in a timely manner.

The above is the business credit report and analysis of the supplier provided by Shangpu Consulting for a trading company, hoping to help a trading company make the right decisions and achieve win-win cooperation.