Frequently Asked Questions - Credit Limit Service
What information is required to calculate a credit limit?
The Credit Limit Service will not calculate a credit limit unless adequate financial information is available. It always requires:
Plus, it requires at least one of the following:
- Financial statements from within the last 18-months, including key balance sheet values
- A Moody's or Standard & Poors issuer rating
- A stock price history, with adequate trading volume over the past 6 months
- A Z"-score
If you cannot determine why a limit is unavailable for a particular company, please contact your Account Manager or our Customer Service department.
Why can't I input U.S. Dollars?
The Credit Limit Service uses a company's actual financial values to calculate a credit limit.
The values used come from Income Statements, Balance Sheets and Statements of Cash Flows, each of which can cover different periods of time.
It would not be accurate to convert all these financials using the latest exchange rate, since the rate when the financials were published may be very different.
Best practice is use the native currency and convert it to US Dollars on the day you are examining the limit.
Copyright © 2022 by CreditRiskMonitor.com (Ticker: CRMZ®).
All rights reserved.
Reproduction not allowed without express permission by CreditRiskMonitor.
The information published above has been obtained from sources CreditRiskMonitor considers to be reliable.
CreditRiskMonitor and its third-party suppliers do not guarantee the accuracy and completeness of the information and specifically do not assume responsibility for not reporting any information omitted or withheld.
The FRISK® scores, agency ratings, credit limit recommendations and other scores, analysis and commentary are opinions of CreditRiskMonitor and/or its suppliers, not statements of fact, and should be one of several factors in making credit decisions.
No warranties of results to be obtained, merchantability or fitness for a particular purpose are made concerning the CreditRiskMonitor Service.
Contact Us: 845.230.3000
Fundamental financial data concerning public companies may be provided by Refinitiv (click for restrictions)
Monday, November 28, 2022