BUSINESS PLAN

If you want to showcase the potential and value of your project in order to persuade the investor or other stakeholder to invest or support it, it is essential for you to Custom Business Plan.

Business plan can help you track, supervise, feedback or assess your business procedure and position your business to the right direction. It can also act as a tool for internal commitment and the base of motivation.

The professionals of Lee & Lee Associates can help you prepare a customized business plan to achieve your finance and management goals.

1. WHAT OBJECTIVES CAN I ACHIEVE WITH CREDIT REPORTS?

a) Control and avoidance of credit risks

b) Improvement of financial management

c) Preparation of marketing and promotion strategies

d) Optimisation of purchase management

e) Establishment of credit system

f) Preparation of corporate strategy

New customer: investigation should be carried out when credit to this customer is granted. You should not only rely on the information provided by the customer.

Periodical investigation: as we are doing business in fast changing environment, periodically credit research is necessary in order to update customer’s information and maintain sound credit management.

Increase of credit transaction or change of transaction patterns: due to the business expansion of customers, transaction credit will increase accordingly. However, you should investigate the real reason of the expansion. You also need to do an investigation you’re your customers’ transaction patterns are changed.

Abnormal order appearance: sudden increase or decrease orders or few quality requirements can be abnormal orders. There may be some hidden frauds.

Abnormal status of customer can be default of their customers, restructuring of the company or change of the top management.

a) In-depth Analysis Report is to provide deep analysis and insights on target’s finance, production and business performance.

b) Business Credit Report is to provide general credit information and comments the target.

c) Financial Report is to provide financial information of a target.

d) Registration Report is to provide registration data of a target.

e) Customized Report is to provide a report according to client’s specific requirements.

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 environmentWHAT ASPECTS SHOULD BE COVERED BY A GOOD CREDIT RESEARCH?

1. 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

a)Screening customer’s basic information in a fast and effective way can help to decide whether credit can be granted and whether it deserves to investigate further. A grading system can be used to calculate financial ratios to evaluate customers’financial status or payment ability.

b)Credit research is to through various channels investigate the customer’s history (generally for 3years), the validity of the information provided, the record of payment and the willingness to make payments.

c)Credit decision is to decide whether credit can be granted and, if yes, the credit amount.

d)Credit control is to supervise the accounts receivable of customers, update customers’ information to ensure customers’ credit amount is geared to customers’payment ability.

e)Collection in time is a very important step for credit management. You should take whatever means such as sending invoices, making calls or taking legal actions to collect overdue accounts. Generally speaking, the longer the accounts receivable is, the harder the amount is to collect.

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