D&B Indonesia

CREDIT RISK

Providing sophisticated solutions, ranging from information reports through to behavioral scoring models and analysis on a business, making us the ideal partner to mitigate risk within your receivables cycle. For your company to minimize risk and maximize revenue, checking a customer or prospect's financial position is an essential business practice. Staying informed of any changes in a customer's status is the only way to make the most informed business decisions. D&B can help you establish credit terms, monitor your accounts and automate your credit decision process.

» Business Information Report [View Sample]

Business Information Reports are a solid source of information to perform critical analysis of business operations, profitablity, stability and finding new opportunities. Designed to help you evaluate your medium-to-higher risk decisions.

It attempts to help you to improve your understanding of a prospective client or supplier by providing you with:
- D&B Rating to help selecting prospects.
- Factual  information on the existence,  operations,  financial condition, management's experience, line
  of business, facilities and locations of the subject company.
- Special events that occur in the subject company.
- Banking relationship and accountants.
- Parent company, affiliated  concerns, subsidiaries, branches, referenced with name and  D&B DUNS®
  Number.

Scope of Business Information Report (BIR) :

Credit Lending
» Assess new credit orders
» Assess lending applicants
» Setting / Adjusting credit lines
» Evaluate Large or problem accounts
» Monitoring major accounts
» Analyzing account receivables
» Compare customer provided information

Sales and Marketing
» Identifies prospective clients
» Estimate account's buying power
» Assist pre-call planning
» Tailored presentation

Finance
» Analyzing of company's performance
» Auditing
» Identifiying financial behavior

Purchasing
» Verify existence of vendor
» Create vendor profile
» Assessvendor ability to meet commitments

Strategic / Corporate Planning
» Competitive analysis
» Benchmarking performace

Merger & Acquisition
» Screen potential candidates
» Creating profile of merger & acquisition targets

» Credit Risk Index (CRI)

The Credit Risk Index (CRI) is calculated from a composite of weighted scores based on the information  contained  in  this  report . A score is assigned for each area on a scale of 1 to 6
(1 representing lowest risk and 6 the most significant). Each score is first weighted according to that area's overall importance in credit analysis, and then aggregated and considered with other relevant influencing factors to derive at the CREDIT RISK INDEX. Adjustments are made to the score for any significant items detected. The credit risk score is always rounded up to the nearest figures.

The D&B Credit Risk Index (CRI) provides a quick assessment of a business's risk standing based on observed business failure of companies in Indonesia. When used together with other information, it helps you derive better risk decisions. The Risk Index computed using D&B's expertise and advanced statistical techniques. It is calculated based on up-to-date information currently available in the ICDNB database.

RISK ASSESSMENT (Credit Risk Index /CRI)
Legends

CRI 1	MINIMAL	Proceed & Extend Terms
CRI 2	LOW	Proceed
CRI 1	AVERAGE	Proceed
CRI 4	ABOVE AVERAGE	Proceed, but Monitor
CRI 5	SIGNIFICANT	Seek Guarantees
CRI 6	HIGH	C.O.D.
--	INSUFFICIENT DATA	No Recommendation Possible
(please note that this rating only server as a guide to the credit risk of subject)

Though the index does not predict the probability of business closure, it reflects from a database profiling approach, the ratio of failed to operating businesses for each Risk Index Level.

The Risk Index is computed using the following key drivers available in the report. Each risk value is first weighted according to that area's overall importance, and then aggregated and considered with the other weighted risk values. The final Risk Index is assigned base on ranges. The final aggregated value is compared with the predetermined ranges and the Risk is assigned to the report.

  o Business Information
  o Financial Information
  o Payment Information
  o Public Filings

» DunTrade^TM

A Powerful automated trade reporting program which enables companies to improve cash flow and expand business activity by sharing customers' payment information with each other.

Leveraging on internet technology, making trade payment information is now readily available at your fingertips at anytime of the day. In addition, instant access to cross border trades becomes reality without compromising the confidentiality of information.

Let D&B assist you in monitoring your existing and prospective customers now.

The Conventional Payment Reference Check

• Calling for Supplier References (names provided on credit application form)
• Checking with counterparts in similar industries
• Internal Analysis/ Research

Customers' Payment Information / Ledgers

Your Essential Credit Assessment Tool

How do I gain access to DunTrade™ Online Payment Information?

Simply pass us your Account Receivables/ Ledgers, and we will do the rest. In turn, you will receive a user ID and Password which allows you unlimited access to online trade information. No membership fee or subscription fee is required as long as participants continue to submit electronic A/R regularly and remain active in the program

Required Accounts Receivable Information

• Customer Code
• Customer Full Name
• Customer Address (important for facilitating name matches against D&B's trade database)
• Telephone Numbers
• Credit/ Selling Terms
• Last Transaction Date (Optional)
• Aging Breakdown of Amounts Owing into:
  - Current
  - Overdue (within) 30 days
  - Overdue (within) 60 days
  - Overdue (within) 90 days
  - Overdue > 90 days

Expected File Format

» Company Self-Rating

D&B's Self rating provides an assessment of your business's financial strength & risk standing based on D&B International rating standard. Many Companies worldwide relied on D&B business Information to assess risk before taking business decision.

It is computed using D&B's expertise and advanced statistical techniques and calculated based on up-to-date information available in D&B's database.

To get your company's credit rating, simply complete the application form and send in together with your latest set of audited financial statements.