There are many reasons for overdue, and it is very common to not investigate the hidden liabilities of the borrower, how to investigate the hidden liabilities of the borrower, especially the liabilities of private lending, is a problem that many credit institutions are very concerned about, so how to investigate the hidden liabilities of the borrower? The author writes this article based on my experience in practice, hoping to help you. It should be emphasized here that there is no one-size-fits-all method for querying hidden liabilities, and there is no so-called standard answer, and the methods described in this article need to be used flexibly in practice.
1. What is hidden liabilities?
Implicit liabilities generally refer to liabilities that are not reflected in the credit report of an enterprise or individual. It usually includes small loans, pawn loans, private loans (usury), loans between relatives and friends, and other liabilities that cannot be reflected in the credit report.
2. Investigation methods of hidden liabilities
Since the above-mentioned hidden liabilities are not reflected in the credit report, it is very difficult to investigate when the borrower maliciously conceals them. The following methods are for your reference.
(1) Financial methods
Investigators must verify the company's financial statements, bank statements, and loan card information.
1. Verify unreasonable accounts payable
"Hidden liabilities" are often presented in the financial statements as other accounts receivable and other accounts payable, and are usually common in the form of "other accounts payable". Investigators should pay necessary attention to this, focus on verifying whether the payee of the accounts payable is the upstream customer of the borrower, verify the relevant contracts and vouchers for the accounts payable in doubt, and directly verify with the payee if necessary.
2. Check the large amount of integer in the company's sub-ledger and bank statement
The capital transactions of enterprises in normal operation are often relatively small in large amounts, while private loans often appear in the form of whole amounts, and the amount is often relatively large. If the investigators discover such a situation during the investigation, they must pay the necessary attention. For doubtful fund transactions, investigators may require the borrower to provide relevant contracts, financial vouchers, outbound and warehousing receipts, etc., and may inquire about the relevant personnel.
3. Observe the deduction on the customer's flow
For deductions at a fixed time and frequency (within a fixed date range of each month/quarter), investigators must pay attention to the fact that the borrower must be required to provide a reasonable explanation if such a situation is found, and if the borrower is not clear, it is very likely that such expenses are private loans. If it is a deduction with the name of the company, it is easier to judge.
4. Pay attention to verify the personal cards of business owners and financial personnel
Many private loans use the personal cards of business owners or financial personnel (these two types of people are the most common), and if possible, ask them to print the bank statements of their commonly used cards (which can often be found through their financial information) and analyze them.
5. Use cross-check and report restoration technology
The so-called financial statement reduction technology refers to the loan officer's on-the-spot investigation, based on the financial information and non-financial information learned, through cross-examination technology, to carry out various forms of cross-examination on the financial statements provided by the borrower, and restore the false financial information to the real financial information according to the results of the cross-examination, and the restored financial statements can be used as the basis for credit decision-making, so as to more accurately assess the borrower's repayment ability and reduce loan fraud. Financial statement restoration technology can effectively solve the current situation that small and micro enterprises have no formal financial statements and high distortion of financial statements, and can restore the real financial status of borrowers, which is a very widely used credit technology in the field of microfinance.
In the case of corporate borrowers, in addition to shareholder investment, the funds for their operations are either operating profits (mainly the company's use of retained earnings to meet its funds) or debt. According to the accounting identity, assets = owner's equity + liabilities, in the case of small and micro enterprise loans, the investigators should restore the borrower's assets, liabilities, owners' equity, income and expenses one by one with the help of cross-examination technology (there will be a special article on this platform in the near future), in this process, the investigators need to understand the business history of the borrowing enterprise, understand its initial source of funds and initial investment, calculate its retained earnings over the years, and compare it with the current development status of the enterprise. It is logical to see whether the historical accumulation of the enterprise and the current asset and liability situation are logically reasonable. A simple logic is that if there is a difference between the sum of the original investment plus the retained earnings over the years and the assets, it is basically a liability. In addition, combined with the historical evolution of the enterprise, analyze whether the current development status of the enterprise is reasonable. Analyze whether the borrowing demand of the enterprise is normal and whether the purpose of the borrowing is reasonable, and if the credit demand of the enterprise is abnormal, the possibility of concealing the debt cannot be ruled out.
Note: The author believes that the statement restoration technology based on cross-check and logic test technology is the "most reliable" method to find the borrower's hidden debt, and the other methods introduced in this article all have the element of luck in a sense, and the report restoration technology based on it, combined with other methods, can often achieve better results.
(2) Non-financial methods
1. Understand the borrower's industry situation, including the cost structure, the average profit of the industry, understand the settlement method between the borrower and upstream and downstream customers, and judge the reasonableness of the borrower's borrowing demand in combination with the borrower's business situation.
2. Through face-to-face communication with the borrower (or business owner), learn about the company's operation, assets, liabilities, etc., analyze its financial situation, pay attention to the borrower's speech, behavior, and expression, see how his mental state is, and pay attention to whether there is anything abnormal. Let's talk about yesterday, today, and tomorrow of the company, and ask the borrower about the financial statements, especially our questions. If the customer deceives them, their eyes tend to be evasive, and they can be found by paying attention. If the customer has gambling, drug abuse and other vices, the mental state is often not very good. In addition, some questions can be designed to "set" the borrower, and many hidden liabilities are talked about.
3. Through communication with the borrower's guarantor and the emergency contact person left, understand the borrower's business situation and whether he has borrowed money from outside.
4. Find useful information through visits to borrowers' neighbors, upstream and downstream customers, employees, etc. For upstream customers, it is necessary to focus on understanding the settlement method, account period, whether there is any arrears in the past, the amount of accounts receivable to the borrower, the borrower's reputation, etc., and understand the amount of credit sales (in cost considerations, if the borrower can get the goods from the upstream customer on credit, he will often not seek private loans). For downstream customers, understand the sales amount, settlement method, whether there is credit sales, account aging, current account amount, product treatment, etc., and comprehensively judge whether the borrower's borrowing needs are reasonable.
Note: Borrowing demand refers to the shortage of funds caused by the borrower due to various reasons, that is, when the borrower's demand for cash exceeds the borrower's cash reserves, the demand for borrowing will arise. Borrowing demand refers to why a borrower is short of funds and needs to borrow. Common factors influencing borrowing demand include: (1) seasonal sales growth; (2) long-term sales growth; (3) declining asset efficiency; (4) Replacement and expansion of fixed assets; (5) long-term investment; (6) Reduction or change of commercial credit; (7) debt restructuring; (8) declining profit margins; (9) Dividend payment; (10) One-time or unexpected expenditures, etc. Combined with the borrower's financial indicators, if there is no need to borrow at all according to the borrower's situation, it is either for other purposes or to repay the debt (there may be other possibilities, which are not discussed).
5. Other credit institutions are also important information channels, and some private financial institutions in some areas have formed alliances, one is to form a blacklist sharing mechanism; The second is to prevent borrowers from borrowing more. Credit institutions can send a customer's ID number to a familiar peer who can help check if they have borrowed money. For private lending, a city's private lending circle is often not large, and if you are willing, it is not difficult to obtain useful information through the circle.
6. If it is a corporate borrower, pay attention to whether there are frequent changes in service personnel. Generally speaking, financial personnel are reluctant to change jobs frequently, and if financial personnel change frequently, it often means that the company's financial situation is problematic. Investigators should pay the necessary attention to this.
7. Pay attention to verify whether the property under the name of the enterprise and the business owner (if necessary, the related party should also investigate) whether it is mortgaged or pledged to other creditors, and the focus of verification here is the real estate. In this regard, the borrower may be required to provide evidence of the property under his name, such as real estate certificate, land certificate, vehicle registration certificate, etc., and the borrower must be required to provide the original, and if necessary, go to the competent authority for verification. If the borrower can't take it out, and can't give a reasonable reason, or the reason is unreliable when heard, nine times out of ten it is in the hands of other creditors.
8. Pay attention to the situation of the borrower's affiliated enterprises. Through credit records, industrial and commercial inquiries and other channels, we should try our best to understand the situation of the borrower's affiliated enterprises, and pay necessary attention to the issue of holding shares on behalf of the borrower. The industrial and commercial information and the executed information of the borrower's affiliated enterprises must be queried.
9. Check the credit inquiry record at the end of the credit report, if the customer has too many credit inquiries in the last 1-3 months, it means that the customer must have made a loan or credit card during this period of time, and as a credit institution, it must be treated with caution.
10. Emergency contacts provided by electric core customers: In addition to seeing whether the information provided by the customer is true, it is also necessary to understand the relationship between the customer and his family, and whether the customer has borrowed money from relatives and friends. It is important to note here that we want these contacts to think that we are trying to help the customer, so as to get the real picture of the customer.
11. Chat with the security guards and doormen of the park or office building, and there may be unexpected gains. For example, ask if anyone has come to collect a debt.
12. Inquire about the customer and its affiliates through the court website, the information network for the subject of enforcement, the judgment and other information websites to see whether they are involved in private lending litigation disputes or other issues.
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