What aspects should be covered by a good credit research?

a)Operation and management information

  • Company’s registration information – business license, tax registration certificate, factory registration certificate and operation permit for special industries; history of the company;
  • Associates;
  • Present top management – personal information, organization structures, major shareholders;
  • Equipment status – location, equipments and tools, environment protection, employees training, quality management system and R&D ability; and
  • Operation status – raw material purchase, marketing channels.

b)Financial information

  • Financial stability
  • Cash flow
  • Profit making ability
  • Bank transactions

c)Macroeconomic information

  • Economic period
  • Industry factors
  • Public policies
  • International economic environment