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Credit Notation

The business creditworthiness assessement tool presented here is used and improved in Credit Management services of many companies.

Simple and easy to use (a few minutes needed to perform an analysis), it is including all the main criteria to perform this analysis while producing useful advises in credit risk decisions you have to make with your customers.
analystes
This tool will give you for each client recommendations to avoid bad debts.

Credit Notation method

The credit notation is based on behavioral information, legal and financial informations:
  • Payment behavior,
  • Age of the company,
  • Legal form of the company,
  • Age of the business relationship and evolution of orders,
  • Evolution of the turnover,
  • EBIT and net income,
  • Financial structure with the level of equity in relation to total assets,
  • Indebtedness, working capital and cash ... etc.
A total of 15 criteria are used to build up this "credit score", each criteria has a defined weight in the final calculation. Four notes are possible:
  • A: Company solid,
  • B: Company stable,
  • C: Company fragile,
  • D: Company close to failure.
It is a clear and useful help in the customer risk analysis and the result has to be integrated into your business approach to request, if needed, down payments or payment guarantees.
The result of the credit notation is one of the elements used to calculate the credit limit granted to your customer.
  • My DSO Manager

    Credit notation in My DSO Manager, the innovative credit management software

    Easy to implement, including intuitive and powerful features, My DSO Manager allows to manage efficiently your accounts receivable.

    It will help to improve significantly cash (get paid faster by your customers), profitability (with less bad debts) and customers satisfaction (with quicker disputes resolution).

    My DSO Manager includes the credit notation to assess customers. The scoring tool can be easily customized according to criteria you want to use. See more with our online demo.
Use the simplified credit rating with clients who refuse to disclose their balance sheet and income statement, which is common in several countries.
In some countries (notably the Middle East) commercial culture is that these documents are confidential and are only internal management tools for managers.
In this case, the solvency assessment will be based on others criteria like compliance and payment behavior, which is of course reflected in the tool.

Next: secure your receivables
 

Online tools:

Credit notation
Easy credit notation

Tools download:

Credit notation tool including 15 criteria to assess creditworthiness of your customers.

The tool is using three kind of criteria:
  • General information (company legal form, age of company, payment behavior...etc),
  • Profit and loss account information (sales, sales history, EBIT, net result),
  • Balance sheet information (equity, working capital, cash...etc.).
Full Credit Management kit including 6 tools which helps to get information from your clients, evaluate their solvency and define their credit limit:
  • Credit Notation,
  • Easy Credit Notation,
  • Credit limit setup and credit limit setup including credit notation,
  • Form and letter to request financial information to customers.
Credit ranking method to use when you don't have detailed profit and loss accounts and balance sheet of your client.

It is based on 8 criteria:
  • legal,
  • age of the company,
  • payment behavior,
  • financials,
  • business stakes...etc.
and produces a credit notation with recommendations for each category.


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This Credit Management Tools is very useful in my present job as a Credit & Collection Manager.

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