ICIL Business Information Services
Local Business Information Reports
ICIL have business information report used for making Credit decision for all types of lending extended by the banks. ICIL each pre-credit granting business information reports are based on SBP prudential regulation for different lending.
Business Information Reports of Foreign Companies
Banks use business information reports on foreign companies to check creditworthiness of foreign companies before taking financial exposure. Under SBP Foreign Exchange Regulation, banks are required to check creditworthiness of foreign suppliers before opening L/C over Rs 1.5 Million. Need of business information is increasing day by day due to rampart bankruptcies and increase in number of Zombie companies to mitigate risk of doing business anywhere in the world.
Global Bankruptcies – Insolvencies:
- According to Euler Hermes, business insolvencies are on increase at global level and expect 6% increase in insolvencies than previous years.
- Altradius also predicts increase in insolvencies in 2019.
Increase in number of Zombie companies:
According to CNN Business Report by Matt Egan & Julia Horowitz, 13% of the world’s companies are ‘zombies’. A Zombie Company, also known as living dead, is a term used for a firm that is unable to stand on its own feet – it either needs one or a series of bailouts, or is kept afloat by lenient creditors and below-market interest rates. Zombie companies are indebted businesses that, although generating cash, after covering running costs, fixed costs (wages, rates, rent) they only have enough funds to service the interest on their loans, but not the debt itself.
In order to avoid taking financial exposure on a company who has filled bankruptcy application, ICIL can be asked to provide bankruptcy status report of a particular foreign company. To avoid taking financial exposure on a Zombie company, financial contents of business information report supplied by ICIL be minutely studied or a comprehensive business information report be obtained.
ICIL have partnership agreement with major business information report provider in USA, in European & Asian Countries to supply business information reports of companies based in their countries who can provide Bankruptcy Status Report and Comprehensive Business Information Report.
