Creditworthiness Investigations/Long-term Credit Rating Assignment
To date, activity of almost every Ukrainian enterprise to a greater or lesser extent is involved in imports of goods from abroad. Considering also that the Agency's key customers are mainly importing companies (often they are both producers and distributors), Credo Line has developed additional functional mechanisms that help to enhance and expand trade relations between Ukrainian importers and their foreign partners (suppliers, usually) .
For over 6 years, Credo Line has been offering its customers a special tool of funding receiving of imported goods - financing of goods imports under the coverage of foreign export credit agencies (ECAs), often even without participation of the importing country bank.
With this end in view, the Agency develops a special kind of research (long-term study of importer`s creditworthiness) - Status Credit Rating Report (SCRR). This investigation serves as a sartorial statement according to international standards for importing enterprise and provides a variety of advantages, namely:
1. Possibility of trade credits obtaining
2. Increase of grace period
3. Credit limits increase
4. Support in establishing business relationships with new partners
5. Beneficial alternative to bank guarantees and bank loans, and often the most efficient substitute.
It also should be noted that the mode of this study allows to make a comprehensive assessment of full Group of Companies (often big business in the CIS countries is represented in this form). Accordingly, a similar study is also possible for a company acting within a single legal entity.
Nevertheless, based on the practice of this product development, the greatest effect is achieved just in favor of the Group of Companies (GC).
At the same time, there are certain features that the Agency recommends to comply in the process of implementation of SCRR development. For example, in order to display the most objective assessment of target company, it is necessary to perform foreign economic relations as transparently as possible: to follow good payment discipline, to have positive credit history, to keep structured consolidated financial statements acceptable to an international user (preferably, according to IFRS) and so on.
Credit researches can be sufficiently individualized, based on the goals and objectives of a specific Client. At the same time, each study is based on the principles of objectivity, reliability and transparency.
For information about the effectiveness and conditions of this long-term creditworthiness investigation, please contact our office or make on-line request.