6 "C" element refers to personality? , capacity? Capital? Collateral, environmental conditions and insurance coverage.
( 1)? Quality (character).
Refers to the customer's reputation. That is, the possibility of fulfilling debt repayment obligations. Is the customer willing to do his best to pay for the goods as promised? It directly affects the recovery speed, amount and cost of accounts receivable. Customer quality includes the attitude that customers promise to fulfill their responsibilities on time, as well as the previous quality characteristics and behaviors such as honesty, integrity and fairness.
Moral factor is a very important issue in credit evaluation. In the past, credit reports of western enterprises generally provided customers with background materials in this regard. You can also get customer quality information from banks, suppliers, intermediaries and even corporate competitors. Make the customer's evaluation more reliable.
( 2)? Capacity (capacity).
Refers to the customer's ability to pay. That is, the ability to repay debts after the credit expires. The main method to judge the customer's ability to pay is to analyze the customer's financial information. Including income statement and financial statement. Enterprises should keep abreast of customers' current assets and their liquidity. Namely the quantity and quality of current assets and its ratio to current liabilities.
The more liquid assets customers have, the stronger their ability to pay. At the same time, we should also pay attention to the quality of their liquid assets. See if there are other situations that reduce the quality of current assets due to excessive inventory and affect their liquidity and ability to pay.
( 3)? Capital (capital).
Refers to the customer's financial situation. Explain the background of customers' possible debt repayment. Enterprises should investigate customers' credit. Analyze and study its financial situation. Determine the credit limit that can still be used; The capital status can be obtained through the enterprise's financial report and relevant ratio analysis.
For key customers, you can also conduct in-depth investigation and analysis. Obtain asset status, including issues left over from asset history.
(4) collateral.
Post, who proposed the second element, thinks? If customers can provide collateral sufficient to compensate the value of credit products, even if the other three credit factors are not good, enterprises can not worry too much about debt recovery. In fact, there are indeed many credit transactions successfully completed under the condition that collateral is the credit medium. Collateral becomes the primary consideration in these transactions.
(5) Environmental conditions.
The environmental situation contains many contents. All factors that may affect the customer's business activities. As big as politics, economy, environment, geographical location, market changes, seasonal changes, wars and so on. Small to industry trends, working methods, competition, etc. It's all reflected in it. This element is different from the other four elements. It is the internal change of customers caused by external factors. Rather than the customer's own control and manipulation capabilities.
(6) Insurance coverage.
Same as collateral. The purpose of insurance is also to reduce the risk in credit sales. But unlike collateral, collateral is usually provided by itself. On the other hand, insurance obtains credit through third-party guarantee.
With the maturity of social commercial service industry, there are more and more institutions and varieties that provide guarantee services for customers. Many reputable customers have been able to obtain credit from credit providers with the help of insurance from service organizations. Insurance is not to provide collateral to obtain credit. Insurance can better reflect the characteristics of modern economic and trade development than collateral, so insurance is more widely used than collateral.