Credit Risk Management

Credit Risk Management service is to establish appropriate credit policy for a company's credit sales, control the increase of accounts receivable, reduce bad debt losses and therefore increase the sales profit, which has become an important part of a modern enterprise management.

  Corporate Risk Management
    •           		Large database containing essential corporate customer information and various industry statistics;
  •      		 Complete credit rating systems for corporate customers;
  •      		 Dynamic corporate customer risk monitoring systems.

      Management of Corporate Accounts Receivable

    Establishing appropriate credit policies
    Credit policies are the rules governing the management of corporate accounts receivable, which include credit standard, credit terms and credit limits.
    •           		Credit Standard: Through analyzing sales, profit, management expense and opportunity cost, establishing the minimal standard for a corporation to extend credit sales to its customers.
  •      		 Credit Terms: Establishing the terms and conditions of credit sales, such as payment period and cash discounts.
  •      		 Dynamic Credit Limit: Appropriate credit monetary limit can effectively guard against corporate losses from credit sales in excess of its customers' payment ability.

    Strengthening internal control and helping establish modern corporate management system
    •           		Customers credit rating and evaluations.
  •      		 Appropriate credit sales plan.
  •      		 Internal approval process for credit sales; establishing responsibilities.
  •      		 Multi-layer accounts receivable management and credit policy amendment.
  •      		 Credit cost and monitoring system; procedures to process bad debts.

      Accounts Payable Management
    •           		Setting up a sound credit "alert" system.
  •      		 Improving corporate image to facilitate future financing.
  •      		 Taking advantage of the credit terms to decide the optimal time and ways for trade payments.