Developing Credit Rating Indicators of Customers for Electronic Companies

In the past, the electronic business made the research on its customers’ credit situation through the financial institutions so as to decrease the risk of bad debt and the cost. However, even seemingly normal, the situation of bill and check exchange does not necessarily mean that the company’s credit condition is really plausible. This research, on the bases of litera-ture review and the factors used by the credit institutions to examine the customers, con-structs the index for the electronic business to review its customers, taking the content of this enterprise’s examination of its internal customers as an important reference. Analytic Net-work Process Method (ANP) is used to find the factors and dimensions for this index. The re-sult of this research includes that “the characteristics of the industry” does not possess in-fluence, while the “financial aspects” are apparently more influential than the “scale of the business.” Among these factors, the “cash flow, profitability, and assets turnover ratio” are the key points. This research suggests that the construction of the index for examining credit situation still has to include the scale of business, because the structure of the enterprise is also central to the examination.