Machinery Financial Cooperative

Credibility evaluation

Purpose of credibility evaluation

We evaluate credibility of management capability and financial statement of the members and reward credibility rates, to differentiate trade terms accordingly.

Parties subject to evaluation

association members : decisions on work trade terms with association

Companies applying for membership in the association : decisions on admission of association membership

Joint and several guarantee company : evaluation on coverage capacity

Companies looking to use other services (PL group insurance, etc.)

Evaluation period

Association members : Submit data within 4 months after the closing date of each year (Individuals within 6 months)

Companies wish to be associated: anytime

Joint and several guarantee company : 1 month before the contract finalization

Validity of Evaluation

After the evaluation financial statement, 1 year and 8 months

Credit rating

The credit rating distinguishes companies across 22 tiers, ranging from AAA to D

The credit rating reflects the evaluations of external professional credit rating agencies designated by the Association

Credit rating Process

Within 4months after the closing date

Evaluation and notice on results within 3 months after submission

Conclude an agreement : within an effective date by evaluation

The effective terms of evaluation : within 1 year and 8 months after cloding date

Agreement can be renewed anytime within the effective period

Closing date
submit required documents
External credit rating agencies’ evaluations
Notification of results from credit rating agencies
Concluding an agreement
Guaranteed transaction

General