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.
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