International and Local Credit Reports

ICCI Information Services

Local Business Information

Business information of Foreign Companies

Local Business Information Reports

Inter Credit Check International (ICCI) provides Local Business Information Reports that are extensively utilized by credit grantors in the banking industry and corporate sectors to determine appropriate credit terms. These reports are vital for ensuring compliance with the State Bank of Pakistan (SBP) prudential regulations, which govern various types of lending, including corporate, commercial, SME, and house financing.

ICCI’s Business Information Reports are instrumental both in the pre-credit granting process, aiding in risk assessment, and in the post-credit granting phase, facilitating the completion of loan documentation, such as Registered Charge Search Reports and other services provided by the Securities and Exchange Commission of Pakistan (SECP).

Each ICCI pre-credit granting Business Information Report is meticulously prepared in accordance with SBP prudential regulations, ensuring its effectiveness in supporting informed credit decisions across all types of bank lending.

Business Information Reports of Foreign Companies

Banks rely on Business Information Reports from Inter Credit Check International (ICCI) to assess the creditworthiness of foreign companies before taking financial exposure. Under the State Bank of Pakistan (SBP) Foreign Exchange Regulations, banks must verify the creditworthiness of foreign suppliers before opening Letters of Credit (L/C) exceeding Rs. 1.5 million. The demand for such reports is growing due to the increasing risks associated with global bankruptcies and the rising prevalence of Zombie Companies, making it critical to mitigate risks in international trade.

Global Trends in Bankruptcies and Insolvencies:

  1. Global Insolvencies:

    • Reports from Euler Hermes indicate a 6% increase in business insolvencies globally compared to previous years.
    • Atradius also predicts a continued rise in global insolvencies.

  2. Zombie Companies:

    • According to a CNN Business Report by Matt Egan & Julia Horowitz, 13% of global companies are classified as ‘zombies’.
    • A Zombie Company refers to a business that cannot sustain itself independently. It survives on bailouts, lenient creditors, or below-market interest rates. These companies, although able to generate cash flow to cover operational costs and loan interest, lack sufficient funds to pay off their actual debt.
ICCI’s Role in Risk Mitigation:

To avoid financial exposure to companies with high-risk profiles, ICCI offers the following services:

  1. Bankruptcy Status Reports:
    These reports help identify foreign companies that have filed for bankruptcy, enabling banks to avoid risky engagements.

  2. Comprehensive Business Information Reports:
    ICCI provides detailed financial information on foreign companies, allowing for a thorough evaluation of their financial health. This is especially crucial when assessing Zombie companies to mitigate exposure to potential losses.

Global Partnerships:

ICCI has established partnerships with leading business information providers in the USA, Europe, and Asia. These collaborations enable ICCI to supply detailed and reliable reports, including Bankruptcy Status Reports and Comprehensive Business Information Reports, for companies across these regions.

By leveraging these resources, ICCI empowers banks and businesses to make informed decisions, reducing the risks associated with international trade and financial exposure.

Get in Touch