TotalSoft and ICAP Romania are launching the first credit risk assessment service

TotalSoft, one of the main players in the Romanian software industry, partner of ICAP Group, one of the most important regional groups for business services in the South-East of Europe, is announcing the launching of the financial and credit risk assessment solution, Charisma Financial Risk Assessment.

Considering that the business environment changes its rules during the game, while becoming more and more instable and less predictable, knowing what the financial or credit risks are is essential for ensuring the cash required for any company’s development. 2009 has registered an unprecedented growth of 384% of debts that have surpassed by 90 days contractual terms, from RON 1.113 million to RON 5.385 million. The number of debtors (individuals or legal persons) has increased from 138,959 in 2008 to 201,667 in 2009. And 2010 does not show any sign of improvement.

Given these conditions, both financial-banking institutions and companies from other business areas must be much more alert with potential customers in order to avoid insolvency situations or payment incidents and in order to validate or invalidate potentially dangerous contracts. According to ICAP Databank Romania, Retail (40%), followed by Constructions (15%), Manufacturing (15%), and Real estate (5%) are in the top of segments most affected by insolvency or bankruptcy.

Charisma Financial Risk Assessment is a solution specially designed to provide in-depth real time financial information, that covers all financial or non-financial indicators required for a risk analysis. The product provides complete information regarding customer history, shareholder structure, affiliated companies or holdings in other companies, profitability data, risk assessment of financial statements from the last years.

“In 2009, 20000 insolvency files were opened and it is estimated that this number will reach 30000 by 2010. Nothing is more unpleasant for a company than to deliver products and services that are not paid because business partners do not recover money from customers, have state debts and were declared insolvent. For this reason, we are launching a service that we consider to be perfectly adapted to the peak of economical, political and social instability we have reached after the recently announced austerity measures – a service that enables a financial risk analysis before signing any commercial contract, said Daniel Ionescu, Strategy Director at TotalSoft.

Charisma Financial Risk Assessment structures information based on interest categories such as company profile, insolvency risk assessment, credit limit, real securities, shareholders and stakes, business relationships between shareholders and other companies, cash, solvability, financial statements for 5 years (balance sheet, profit and loss account), scoring indicators or sector comparisons. The solution automatically signals the occurrence of any negative events such as negative financial indicators, payment incidents, debts towards the state budget, legal files, social insurance, health or unemployment debts among the company’s employees.

Source: TotalSoft

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