Supplier Credit Rating

This video provides a comprehensive exploration of Company Credit Rating within the supplier card's Ratings and Metrics tab, elucidating its role in gauging a supplier's financial strength, risk, and influence on payment term negotiations.

Introduction:

  • The video delves into the concept of Company Credit Rating, specifically focusing on its presentation within the Ratings and Metrics tab on the supplier card.

Credit Rating Essentials:

  • Explores the fundamental purpose of credit rating, emphasizing its role in measuring a supplier's likelihood to repay debts and indicating its overall financial strength.
  • Highlights the inverse relationship between credit rating and risk, elucidating that a higher credit rating signifies lower risk for the company.

Impact of Credit Rating:

  • Discusses the implications of credit ratings on a company's ability to secure debt, emphasizing that higher-rated companies face lower costs in obtaining debt.
  • Draws parallels with major credit rating agencies to underscore the reliability of Calculum's credit rating scale.

Internal vs. External Ratings:

  • Distinguishes between internal and external credit ratings, clarifying that internal ratings are calculated within the ADA platform.
  • Stresses the significance of understanding whether the credit score is internally or externally generated.

Role in Payment Term Negotiation:

  • Highlights the pivotal role of credit ratings in payment term negotiations with suppliers, showcasing how a supplier's creditworthiness can influence the negotiation process.

Conclusion:

  • Wraps up the video, summarizing the key takeaways regarding Company Credit Rating and its impact on supplier interactions.

0:00 - In this video, we will cover the company credit rating on the ratings and metrics tab within the supplier card. credit rating is a typical rating.

0:08 - That measures the supplier's likelihood that they will repay their debts. it indicates its financial strength. higher the credit rating the company is, the lower the risk that they have.

0:19 - They pose. The lower the credit rating, the more expensive it is for them to take out debt. Calculum uses a similar credit rating scale to some of the major credit rating agencies.

0:35 - There is an indicator showing whether the credit score is internal or external. If it's internal, that the credit score was internally calculated on the added platform. credit rating is a major influence when it comes to your payment term negotiation with your suppliers.

Up next

0:48
Estimated Financing Rate of the Supplier
In this video, the Suppliers Estimated Financing Rate on the Ratings and Metrics tab within the Supplier card is explored, detailing its composition involving base rates and credit spread, which collectively influence the cost of financing based on the supplier's creditworthiness.

Course Lessons

Supplier Opportunity - Top 4 Boxes

Supplier Opportunity - Top 4 Boxes

1:26
Supplier Opportunity - Payment Terms

Supplier Opportunity - Payment Terms

1:02
Overview Description of Supplier Opportunity

Overview Description of Supplier Opportunity

1:24
Adding Harmonization or Financing to a Supplier

Adding Harmonization or Financing to a Supplier

2:24
Corporate Tree

Corporate Tree

1:31
Supplier Credit Rating

Supplier Credit Rating

0:48
Estimated Financing Rate of the Supplier

Estimated Financing Rate of the Supplier

0:35
Buyer Leverage with a Supplier

Buyer Leverage with a Supplier

0:44
Supplier Financial Metrics

Supplier Financial Metrics

0:11
Supplier Data Depth

Supplier Data Depth

0:32
Country Rating of the Supplier

Country Rating of the Supplier

0:59
ESG Rating of the Supplier

ESG Rating of the Supplier

0:30
Diversity, Equity, & Inclusion (DEI)

Diversity, Equity, & Inclusion (DEI)

1:04
Adding Supplier Notes

Adding Supplier Notes

1:24
Supplier Data Change Request

Supplier Data Change Request

0:32