Models > CRIDA
CRIDA :
-> Provides an objective basis of Credit Volume
-> Establishes tighter process controls for credit management
-> Redeploys your credit resources more profitably
Assessment of creditworthiness of market dealers is a complex and challenging task. A dealer's business contains substantial informal resource flows, which are difficult to quantify and inspect. The assessment process is expensive and time consuming because of the large number of assesses.
METRIC's model CRIDA is based on the conceptual frame Work that Creditworthiness is a manifest attribute of dealer's business behaviour and is closely dependent on his management practices. CRIDA measures a dealer's credit worthiness by collecting authentic and reliable data on various aspects of his business management practices. An index of creditworthiness so constructed to provide authentic & cost effective inputs for future credit management. Aspects of management Practice that are constituent variables for the Index of Creditworthiness (I c/w )
1.Nature of organization
2.Form of organization :
3.Goodwill in the market place
4. Leadership
5. Owner's age and profile of close family members
6. Relationship with bankers
7. Composition of working capital
8. Trend in business
9. Efforts at sales promotion
This list is only illustrative. It is expanded and refined through initial qualitative study & discussions with the client. A combination of direct survey and observation based methodology is employed for data collection. CRIDA also estimates the volume of credit that can be extended by estimating the dealer's Sales Potential, Brand Commitment to Company and past history regarding his financial transactions with company. CRIDA helps in evaluating and developing better Credit policies for your company.
