Regular income streams compared to project-based or ‘lumpy’ cashflows
Relatively high negotiating power within the supply chain i.e., able to set its own credit policy or demand for cash payment upfront
Consistently demonstrates revenue growth
Has a diversified customer base rather than concentrated on a few customers
Therefore companies may report negative profit in their financial statements, but have a high Credit Grade.
Just like seeing a doctor or performing a health screening, credit assessment only provides a snapshot of the financial health of the company at that point in time. In which case the financial health of the company may change in the following situations
Change of customer preferences
Change of competitor landscape
Change of regulatory environment
Change of logistics and ability to fulfill orders
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