Working Capital Management

Working Capital Management (WMC)

Credit Analysis -3

We are talking Credit Analysis. The cost in terms of time and money resources involved in such experience would outweigh the benefits. But at the same time the company has to come o conclusion and satisfy itself that the customer to whom it is extending credit is worthy of it and the risks involved commensurate with the return. Bad Credit Repair analysis helps company to plan their credit policy.

   

In order to undertake credit analysis, the company may analyze the financial statements of the customer. For the companies which are listed on stock exchanges, obtaining their financial statements is not difficult as the same are available with the exchanges. Some of the major stock exchanges regularly publish summarized financial statements in their directories. In case the customer to whom the company is thinking to extend the credit is not listed and the financial information is not available, the company can ask the customer to submit the latest financial statements. In such situations the company may adopt a policy not to extend the credit to customers who do not submit the financial statements. Credit Repair and Credit Repair Services helps to have good credit reports for individuals.

   

Once the company gets the financial statements the following analysis would provide information about the credit worthiness of customers;

  

Ratio analysis

Fund Flow Analysis

 

Inter-firm comparison 

 

 Discriminate analysis and mark or analysis can also be usefully employed for credit analysis.

 

 

 

The business magazines generally carry the detailed analysis of financial statements and inter-firm comparison of companies in the same industry. This information would be useful in assessing the market conditions of a particular industry. Free debt settlement report helps company for credit analysis. The company can also ask the customer to provide the list of references or the names of companies with whom the customers has transacted in the past. The company can then explore about the credit worthiness of customer through the references provided by him. Repair Credit is one of the service helps company for credit analysis.  Additional information may also be obtained by interviewing the customer or visiting his place of work.

 

 

Advertisements

August 6, 2008 - Posted by | Business Flow, Capital, Credit Analysis, Credit Rport, Working Capital, Working Capital Management | , , , , ,

1 Comment »

  1. Funny, I used credit saint to fix my credit and my score went through the roof in no time. Totally worth the money.

    JW

    Comment by Jed | August 6, 2008 | Reply


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: