. Verification of a counterparty, valuation of counterparty solvency
 
Verification of counterparty solvency

Verification of counterparty solvency

Any business transactions are accompanied by a variety of risks. One needs to have access to important and reliable information to make correct decisions and reduce risks when working with potential partners and clients.

The integrity of your partners - the success of your business in the future. Under today's modern conditions of building long-term partnerships, you need to trust your partners from the very beginning.

Enterprises credit their counterparties to provide additional support, increase sales and ensure mutually beneficial cooperation with clients. This results in a balance, which generates a considerable amount of receivables. To some extent, this also deprives a company of mobility and reduces its liquidity.

In today's competitive market environment receivables management is complex. The information regarding a creditor, their reputation and the financial conditions of their assets are all needed for successful management. Based on this, an enterprise develops a credit policy that maximizes cash flow and compensates for the risks, thereby increasing the shareholder's value of the company.

Using its vast experience and knowledgeable professionals, regarding the assessment of the financial conditions of a counterparty, Swiss Appraisal will help you to analyze the financial activity of your client and minimize your financial, commercial and reputational risks.

Objectives of counterparty solvency verification

Swiss Appraisal identifies the following goals for counterparty solvency valuation:

  • Analysis for decision-making regarding loan granting
  • Analysis of the search for information about a client's integrity
  • Analysis for minimizing the financial, reputational and commercial risks when working with a counterparty
  • Analysis for building long-term client relationships with payment security

If you want to assess a counterparty, send a request via the website.

Documents required to verify counterparties

  • The financial statements of the company
  • Legal documents of the company
  • The list of counterparties

Counterparty solvency verification stages

Swiss Appraisal verifies the solvency of counterparties by taking into account their own capabilities and the financial and economic indicators of a potential partner in the external market environment. In the process of working with clients we elaborately discuss the required findings and analyze the current business indicators.

Solvency verification can be done in two stages:

  • The first stage includes the collection, processing and analysis of information containing registration data, data on ownership and the shareholders, the CEO and revealing the facts of any unfair behavior, also included are the company's legal trials and a media based drawing of the company's "portrait".
  • The second stage is an analysis of the financial position of the company based on its internal financial reporting. The sources for the analysis of the solvency of the company are external information databases, publications, media, domestic sources of financial reporting, registration documents as well as first contact with the company's representatives.

What you get in the Swiss Appraisal's report on a client's solvency

In the expert's opinion of the solvency of a client you get information on the following:
  • Counterparty participation in suspicious or criminal activities
  • Allegations of bribery
  • Allegations of "money laundering"
  • Litigation proceedings
  • Counterparty ownership structure
  • Shareholders and their shares
  • Corporate matters and business relations
  • Reputation in media
  • Experiences of other companies with the counterparty
  • Financial conditions of the counterparty
  • Risks of working with the counterparty

For more information on counterparty solvency verification, please contact the Swiss Appraisal regional office.