A Simple Credit Vetting Or Evaluation Checklist
Append below a simple credit evaluation checklist:
|
What Do We Evaluate
|
What Do We Look For |
Sources of Information |
| Who are the directors | Director(s) name & Identification or Passport | Form 49 (Malaysia) – filing in Registrar of Companies |
| Majority shareholders | Is this a subsidiary of a more reputable company? (Can we also get a Corporate guarantee?)Is it linked to holding or associated companies that have very bad credit status in the market? | Form 24 (Malaysia) – filing in Registrar of Companies |
| Size of company | Total number of employees Annual Turnover |
Credit Application Form |
| Type of company | (a)Legal Constitution: Sole proprietorship, partnership, private or public listed status, (b)Holding company/Associated/Subsidiary |
Credit Application Form |
| Trade Reference | Fellow companies that we know that we can called to ask, Any names of reputable suppliers that are presently giving credit to the applicant, |
Business Trade Reference, Association of Credit Bureau. |
| Credit Rating/Monitoring Agency | Bankruptcy Winding Up Petition |
Registrar of Companies |
| Capital Authorised Paid-up | Too “little” capital re: overtrading (against its sales) | Audited Financial Statements and Annual Returns |
| Ability to pay | Net Tangible Assets Quick Asset Ratio Current Asset Ratio |
Audited Financial Statements |
| Viability of Company | PBT | Audited Financial Statements |
| Collection Period | Average Debtors day | Audited Financial Statements |
| Payment Period | Average Creditors day | Audited Financial Statements |
| Guarantee Available | Corporate guarantee Personal guarantee Joint & severally Bank guarantee |
Credit Application Form showing type and shareholding status |
| No. of years trading | Date of Incorporation Date of Commencement of business |
Credit Application Form |
- Using Trade Reference As Part Of Credit Vetting Procedures
- Use The Corporate Guarantee Form When Granting Credit Facility To Your Customer Who Belongs To A Group of Companies
- Credit Evaluation Criteria
- ALL TOPICS COVERED UNDER THE HEADING-CREDIT MANAGEMENT/CREDIT CONTROL
- Sample Of A Bank Guarantee Agreement Used in Credit Control/ Management
- What Are The Roles/Function Of Credit Management Department
- How To Be Proactive To Offer Alternatives For Marginal Customers Or Those Who Want To Increase The Credit Limit/Terms
March 23, 2006
Tags: Credit control, Credit management, Credit vetting
Posted in: CREDIT MANAGEMENT/CONTROL
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