Meaning and Purpose of
Enterprises’ International Credit Rating and Promotion
4.Enterprises’ Credit Is the Lifeline of Enterprises’ Existence and Development
In market economy, any economic main body will rely on credit to communicate with other main bodies. As the main body of economic activities, enterprises’ credit status not only decides their own fate, but also influences the economic activities of interest-related main bodies such as banks, etc. Credit also affects the running efficiency of economy and market order, and constrains the development of national economy. The essence of enterprises’ credit is enterprises’ commercial credit and it is the evaluation of commercial credit of enterprises’ honesty and keeping promise. Since the ancient times, China has an old saying that “Man, Family, Business and Country Cannot Be Prosperous without Credit”. A person without credit cannot base himself upon the society; an enterprise without credit cannot exchange with other economic main bodies. The two major issues--------banks control loans and medium and small sized enterprises are hard to finance------which are significant and have been long harassing enterprises, are caused by deficiency of some enterprises’ credit to the whole market.
Presentation form of enterprises’ credit in transaction is the value of enterprises’ commercial credit and commercial credit right brought by enterprises’ commercial credit. As the civil subjects, enterprises have commercial credit right as long as they have commercial credit. Along with the development of construction of China’s market economy, the economic activity is increasingly regulative. Commercial credit right will be utilized as one of enterprises’ civil rights to perform more and more important functions.
(1) Prevent enterprises’ legal rights from infringement. Relying on the exclusivity of commercial credit right, enterprises can fight against infringement of other civil subjects and be engaged in normal production and management. Prevent from hostile damages.
(2) Enterprises can get relevant credit interests. Enterprises’ commercial credit is the positive evaluation given by the society and market to enterprises, and it has significant meaning for building legal persons’ good images and gaining trust from the social public. Enterprises can make use of commercial credit to get convenient conditions in the areas of investment, loan, and credit sales, thus gaining credit interest from this.
(3) Enterprises’ commercial credit can guarantee the safety of transaction, elevate transaction efficiency, and decrease transaction cost. Transaction, more often, is a two-way contract. If one party has no commercial credit, it means the contract and promise cannot be fulfilled, so the transaction cannot go through smoothly. Or if one party’s commercial credit is indefinite and unclear, numerous investigations, consultation and evidence taking will be carried out if the transaction needs to be concluded. Both transaction cost and transaction risks will be increased. Therefore, only under the premise of existence of enterprises’ commercial credit can the safety of transaction be secured. Just because commercial credit represents a kind of trust, which has been tested by the market, enterprises can realize mutual trust and reach agreements and understandings in the transactions, and the transactions can be concluded, and the efficiency can be elevated. It can be seen that enterprises’ credit is the primary condition of enterprises to realize economic exchanges, and it is the lifeline of enterprises’ existence and development. Only by experiencing continuous transactions and economic exchanges can enterprises exist and develop.
In market economy, if one person loses credit, nobody will affiliate with him; if an enterprise loses credit, it cannot base itself upon the society; if a country loses credit, economic order will be disturbed and social stability and political peace will be influenced.
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