The Credit Opinion Report contains a brief assessment of the company’s business situation, a rating, the probability of insolvency and the recommended credit limit. The report is a practical tool for the establishment of credit limits for new and existing customers.

Credit Opinion Report is available in Estonian and English.

The report contains the following information:

  • Contact information, status and age of the company
  • Credit recommendation
  • Creditinfo Rating
  • Recommended credit limit
  • Probability of insolvency
  • Members of the management board and regulations of their rights of representation
  • Registered fixed capital
  • Main activity
  • Value added tax identification number
  • Overview of tax arrears and payment defaults of the previous year
  • Summary of the business and financial situation of the company

Why is the Credit Opinion Report reliable?

The Credit Opinion Report contains the company’s creditworthiness assessment which consists of three elements: the Creditinfo Rating, the probability of insolvency and the recommended credit limit.

The Creditinfo Rating and the probability of insolvency are assessment elements which measure the company’s capability to pay back its credit in the future.

The calculation of the probability of insolvency includes the following data on the company:

  • business and financial indicators of previous 3 to 5 years;
  • field of activity;
  • information from the Credit Register;
  • information from the Tax Board;
  • payment behaviour of members of the management board;
  • payment behaviour of companies related to the management board.

The probability of insolvency provides a clear explanation of whether any minor arrears of the company are purely incidental (e.g., arising from negligent payment discipline) or the company suffers from a so called snowball effect where the amount of credit is increased to pay off old debts.

The probability of insolvency establishes the following requirements to the credit worthiness of a company:

  • If the company’s probability of insolvency is below 5% then it is safe to give credit to the company;
  • If the company’s probability of insolvency is between 5% and 12% then it is given credit only upon presence of mitigating circumstances;
  • If the company’s probability of insolvency exceeds 12% then credit should not be given to the company.

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