What is Corporate Credit?
Corporate credit refers to the credit rating of an enterprise assessed by a third-party credit reporting agency based on the credit rating rules of the credit reporting agency by collecting information about another enterprise.
Business credit
- Chinese name
- Business credit
- Nature
- Money borrowing from seller to buyer
- Corporate credit refers to the credit rating of an enterprise assessed by a third-party credit reporting agency based on the credit rating rules of the credit reporting agency by collecting information about another enterprise.
- It includes credit sales to customers of a corporate nature in the credit management of manufacturing companies, that is, products
- Corporate credit management is a
- The overall goal of corporate credit management is to strive to maximize the sales while
- 1. The information database has been collected, processed, and entered by hundreds of branches for 10 years, and has been working hard to optimize and maintain hundreds of daily staff members. It has already owned more than 20 million Chinese regional enterprise databases, involving valuable Corporate credit information reaches 100 million pieces, credit information can be traced back to 8 years, and China's largest corporate credit information database has been established.
- 2. Enterprise credit information is divided into six categories
- They are government supervision information, bank credit information, industry evaluation information, media evaluation information, enterprise operation information, and market feedback information. The government supervision information includes the basic qualifications of enterprises, quality inspection information, administrative permits / recognitions, administrative reward and punishment information, trademark / patent / copyright information, and people's court judgments; bank credit information includes the People's Bank of China credit evaluation information, and commercial bank credit evaluation information ,
- Corporate credit is a product of the market economy. It is a comprehensive analysis and measurement of the ability of various market participants to fulfill the corresponding economic contract and the credibility of the company as a whole. The specific effects and benefits of credit ratings on enterprises include:
A valid credit "ID"
In the market economy, each enterprise (unit) is an independent operator. To sign a sales contract, participate in bidding, apply for qualifications, fight for government procurement, and so on, you need to have an effective credit "ID card" in order to gain the trust of the other party.
- A credit rating agency that has been rigorously reviewed and approved by regulatory agencies in society through independent evaluation procedures and an independent, objective, and impartial credit rating has become an effective credit "identity card", enabling partners to obtain an accurate, Fair credit information has played an irreplaceable role in accelerating cooperative decision-making.
Two reliable "passes"
In the capital market, enterprises (units) need to use bonds and other financing tools to raise funds, and they must pass the credit rating of a qualified appraisal institution before they can issue bonds. In the credit market, enterprises (units) also need to go through credit when they apply for loans from financial institutions. Ratings, especially key large loan companies (units) with a certain loan scale, must undergo a standardized evaluation by independent third-party professional rating agencies that have confirmed their qualifications in order to obtain loan support from financial institutions. Therefore, the credit rating is the "pass" required to enter the financial market.
III. Important Measures for Enterprises to Reduce Financing Costs In market economy countries, the level of corporate credit is directly linked to the size of financing costs. Enterprises (units) with high credit ratings and good credit ratings have low interest rates for issuing bonds or applying for loans, while companies (units) with low credit ratings and poor credit status have correspondingly higher interest rates for issuing bonds or applying for loans; Enterprises (units), that is, those without credit records, are not allowed to issue bonds in the market, and it is generally difficult to obtain loans. At present, China's interest rate marketization reform has been steadily pushed forward. According to the People's Bank of China, commercial bank loans to enterprises (units) can be based on the benchmark interest rate, according to the credit status of enterprises (units), and based on the principle of risk-reward symmetry to determine the loan interest rate High or low, so the level of credit will be directly related to the size of the financing cost of the enterprise (unit). [2]
- 11 enterprises in Ganzhou city received AAA credit rating [3]
- A few days ago, China's third-party big data credit reporting platform, Lvdun National Enterprise Credit Reporting System was evaluated. Lvdun reported to the Ganzhou branch. Jiangxi Ruijin Jinzi Wire & Cable Co., Ltd. and other 11 cities in Ganzhou have received a AAA credit rating. The 11 AAA-rated companies are from the cable, furniture, baby food, auction, catering, chemical, and fruit industries. They have obtained the Green Credit National Credit Reporting System Lixin certification for more than 200 days. Ganzhou's most credible corporate brand.
- It is understood that in China, the more popular is the third and tenth credit rating standards, the AAA credit rating is the highest, representing a high degree of corporate credit, low debt risk, an excellent credit history, good operating conditions, and strong profitability. The development prospect is broad, and the influence of uncertain factors on its operation and development is minimal. Under the credit evaluation mechanism of big data credit, the system collects the company's credit information dynamically and in real time. The company's credit rating changes according to the company's government supervision, operating status, performance, and market feedback. Credit status, providing reliable credit reference for government departments, financial institutions, enterprises and consumers.