16-Payment (Payment Information)
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Introduction of Credit Management for Overseas Trade

36 Things You Need to Know About Credit Management for Overseas Trade

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16. Payment (Payment Information)

The payment information included in the CS report includes DBT and Industry DBT. DBT stands for Days Beyond Terms and indicates the Delay in several days.

 

Industry DBT represents the average days beyond terms in the industry and within the industry, we can compare how much the concerned company has delayed. Also, by looking at Payment Trend, it is possible to see if the days beyond terms are improving or deteriorating.

 

Besides, the following information is displayed in number and amount, so you can get an overview of payment to the vendor.

 

●Average Invoice Value

●Invoices Available

●Outstanding

●Paid

 

The breakdown of Outstanding and Paid is described in the graph and it can be intuitively judged visually whether the payment situation is good or bad.

If you want to know the details, you can see the specific number by looking at the table that appears at the end of the report.

The payment information is basically numbers and amounts, so it is not possible to know a specific supplier and delay status by invoice. The reason for not describing the details is to make it easy for a company providing payment information to provide CS with information. For reference, about 7,000 companies provide payment information in CS and about 250 million payment information is collected annually.

Payment information is an important item in overseas credit management, some companies may even emphasize more than financial statements.

 

The advantages of payment information over financial statements are the following two points. 

(1) Latest Information

(2) No manipulations 

 

(1) Latest Information

It takes time for financial statements to be updated in credit reports. For example, if the fiscal year of a company ends at the end of December, it will be reflected in its credit report three months later at the earliest and it may take more than six months depending on the country.

However, since payment information is updated daily, it is possible to know the current financial position of the subject.

 

(2) No manipulations

Manipulation could be a major problem even in the financial statements of listed companies. The credibility of financial statements of unlisted companies that have not been audited is in doubt.

On the other hand, payment information is obtained from the suppliers, it cannot be falsified by the subject.

We can know the true payment situation of a company.

ebook Description and CTA (Introduction of Credit Management for Overseas Trade)

【PDF】Introduction of Credit Management for Overseas Trade

Introduction of Credit Management for Overseas Trade

36 Things You Need to Know About Credit Management for Overseas Trade

This ebook was created as a resource for those who have trouble with diverse trading or want to learn Credit Management in a rational.

 

Chapter (Excerpt)

  • Major Differences Between International and Domestic Transactions 
  • Trade Reference
  • Bank Reference
  • Collection Agency
  • Reasons Behind Difficulty in Recovering Delayed Debts
  • Mistakes in International Transactions Where Japanese Companies are Prone to Fail
  • Customer Analysis ~ 5 C's of Credit
  • Dangerous Signs
  • Five Principles of Debt Collection