Credit investigation, due diligence, credit analysis, credit evaluation-World Credit Organization

4.3 Credit investigation, due diligence, credit analysis, credit evaluation

4.3.1 Related concepts of credit investigation

Credit investigation is a traditional credit service, ICE8000 improves it. Credit investigation service standards: "ICE8000 International Credit Standard System Credit Investigation Standards" (https://www.ice8000.org/acnhwgc/41.htm).

1. Credit investigation

Credit investigation is the most basic credit product, and it is also the beginning of the development of credit evaluation industry. The service content of this product is mainly: a credit agency is entrusted by a certain organization to investigate the credit situation of another organization, and after the investigation, issue a credit investigation report to the client.

The value of credit investigation products to customers is: it helps customers understand the credit status of relevant organizations to prevent the risk of dishonesty.

The object of collection of credit investigation products is generally the client.

According to the purpose of the credit investigation, the credit investigation can be simple or in-depth. It can be as simple as investigating the registration time of a unit, or it can be as deep as investigating the overall situation of a unit, and conducting analysis and evaluation.

2. Due Diligence

Due diligence refers to the comprehensive and in-depth review of the historical data and documents of the enterprise, the background of the management personnel, market risk, management risk, technical risk and capital risk by the intermediary agency with the cooperation of the enterprise. Public offering of stock listings and corporate acquisitions.

Because the purpose, plan and scope of credit investigation are very broad, due diligence can also be regarded as a kind of credit investigation.

3. Credit analysis

Credit analysis refers to the analysis of relevant information by credit professionals. The main purpose of the analysis is to identify risks, identify authenticity, and determine the significance of relevant information.

Credit analysis is often inseparable from the purpose of credit investigation, so it can be regarded as a part of credit investigation work.

Fourth, credit evaluation (credit evaluation)

Credit evaluation is also called credit evaluation, and its service content is mainly: credit institutions evaluate the credit status of an organization such as repayment ability and contract performance ability, and issue evaluation reports or evaluation opinions. Credit evaluation generally needs to first investigate the identity information of the evaluated object and obtain its financial information or consumption records, and then judge its future repayment ability and contract performance ability based on financial analysis methods and other means.

The value of credit evaluation service lies in the following two aspects:

On the one hand, for the stakeholders of the appraised object, the credit appraisal report or appraisal opinion is a kind of professionally processed credit information, which has high readability and reference value, and can help them prevent or reduce credit risks .

On the other hand, for the evaluated object, the credit evaluation report or evaluation opinion can improve its credibility, or help it discover and improve its own deficiencies.

Credit evaluation is often inseparable from the purpose of credit investigation, so it can also be regarded as a part of credit investigation work.

4.3.2 General process of credit investigation

4.3.3 Method of credit investigation, credit information confirmation letter

1. The way of credit investigation:

1. Notification investigation refers to the investigation method of notifying the subject of investigation, requesting them to provide relevant information and declare credit records, and then conduct sampling verification and analysis of the information and records;

2. Secret investigation refers to the investigation method of conducting investigations without the knowledge of the investigated object;

3. On-the-spot investigation refers to the investigation method in which investigators go to the location of the investigated object to conduct investigations;

4. Interviewing relevant persons refers to the investigation method in which investigators conduct interviews with relevant persons in order to verify facts and doubts.

2. Credit Information Inquiry Letter

1. ICE8000 credit institutions can send credit information inquiry letters to relevant units, requesting relevant units to submit relevant materials or respond to inquiries.

2. The credit information confirmation letter sent by the ICE8000 credit agency should be filed with the World Credit Organization (WCO).

3. The [established credit organization] that receives the credit information inquiry letter from ICE8000 credit institutions is obliged to respond in accordance with the relevant standards such as the "ICE8000 International Credit Standard System Organization and Personal Information Disclosure Standards".

4. If an organization that has not established credit information received an ICE8000 credit information inquiry letter from an ICE8000 credit institution submits relevant materials to the ICE8000 credit institution or responds to inquiries in a timely manner, it is an act of integrity, and the ICE8000 credit institution should give praise and identify it as a support ICE8000 credit institution should record the credit information inquiry letter, and all ICE8000 credit institutions of the World Credit Organization (WCO) should pay attention to this record when conducting relevant credit evaluations.

4.3.4 Commonly used simple credit investigation methods

1. Use Baidu, 360 and other search engines to find and log in to the site of the company under investigation or the website of the provincial industrial and commercial bureau to inquire about its registration status.

Second, use the company's full name, font size, contact number, address, legal representative's name, legal representative's phone number and other information to search in Baidu, GOOGLE, 360 and other search engines.

Third, use ICE8000 credit search and ICE8000 software background internal information query respectively to query relevant information.

4.3.5 Commonly used simple credit analysis methods

1. Judging whether it has the qualification of a legal person through the name of the unit, for example: a limited company has the qualification of a legal person, and a branch or office generally does not have the qualification of a legal person. Institutes, stores, and centers may or may not have legal personality.

Second, judge the repayment ability of a company through the association relationship. If a company's parent company or brother company has strong financial resources, it can be considered that the company has strong repayment ability.

Third, if a company claims that it has a background, or often uses photos with leaders to promote itself. Further analysis is required: whether the company's public relations ability is higher than its operating ability, and whether it has sustainable development capabilities.

4. If a company has a website, it generally indicates that the company has high transparency and normal business activities.

5. Check the other party's ICE8000 credit file to check their integrity points, credit records, and integrity levels, whether they belong to a member of an integrity family or an integrity alliance, and if they belong, check the integrity points, Credit records, integrity levels, and then analyze and interpret according to relevant ICE8000 standards.

The above content is excerpted from "Introduction to ICE8000 Credit Knowledge" (written by Fang Bangjian, free to use, but please indicate the source)