Enterprise Credit Investigation Principles

Author: Zhong Xiaoying
Publisher:
Publish Date: 2004-04-01
Features: Credit investigation activities arise with the emergence of the credit economy and develop along with it. Credit is an expectation of fulfillment behavior arising from economic transactions, which is a commitment to debtors—a debt commitment; for creditors, it is a risk—credit risk. To prevent, reduce, and control risks, creditors need to evaluate the possibility of debtors fulfilling their obligations through the information they possess, which is what credit investigation is. "Credit" means to collect, verify, and confirm, while "credit" also means credit, reputation, and trust. Therefore, credit investigation is also known as credit checking or credit investigation. The term "credit investigation" first appeared in the Zuo Zhuan (The Zuo Commentary): "A gentleman's words are trustworthy and well-supported, hence grievances are kept far from him." The English term for credit investigation is credit checking or credit investigation. In real economic life, the most common form of credit is corporate credit, also known as commercial credit. In business transactions with enterprises, activities such as bank loans, financial leasing, commercial investment, and commodity transactions all involve credit investigation of corporate clients, making the applications of credit investigation very broad. Corporate credit investigation is both a science and an art, requiring both professional knowledge and practical experience, as well as expertise in business, law, and policies. The author has taught credit theory at universities for many years and has also managed credit operations in banks for many years. He deeply felt the lack of domestic works on corporate credit investigation, which inspired him to write this book. The book presented to readers now includes some research insights from the author's time at universities, but more of it comes from his experience in banks, especially in improving its content during the training of credit personnel.