JBT ID Number

Important to check, as many accounts do business under similar names.

Classification/Designation

• Indicates type of business (wholesaler, retailer, manufacturer, etc.).
• Indicates business structure (corporation, partnership, etc).

Name of the Company

• Name for use on credit applications and contracts. Not to be confused with D/B/A.

Address of Main Location and Branches

• Is the "Ship To" address listed as the main address?
• Verifies that the address given is a location from which the company conducts business.

Number of Reports Drawn on the Subject in the Last 90 Days

• This number indicates the number of answered inquiries on the account by other JBT members during the preceding 90-day period. A high level of inquiry may suggest that further investigation is warranted.

PRINCIPALS

Names

• Indicates who is authorized to sign a contract on behalf of the subject or grant authorization to another party.

Title

• Sole proprietor, partner, or authorized officer.

Marital Status

• Important in sole proprietorships or partnerships within community property states.
• Important if guaranties are requested from officers.

 CREDIT RATING

Due to the length of this explanation, subject is handled at end of this section.

DATE (NEXT TO RATING)

• Indicates when current rating was assigned.

REPORT LAST UPDATED

Date reflects the more recent of the following:

• The date at which a change to the interview, general remarks, or record information contained was made.
• The date at which a confirmed copy of the report was last sent to another member, thereby necessitating a review of the report and rating.

INTERVIEW

• Indicates the date that latest communication (either oral or written) was received from a company official.

RECENT DEVELOPMENTS

• Highlights for the reader any recent communications or developments, especially when a report is frequently updated.

FINANCIAL STATEMENTS

Itemized Statement

• Provides the detail from which the ratable capital portion of the ratings is derived.
• Allows members to utilize other data for own analytical purposes.

Comparatives

• Indicates the change in financial condition in comparison to previous years (three-year maximum).
• Provides measure of liquidity and leverage as well as turnover ratios up to a maximum of three years depending upon availability of financial data. Refer to the glossary section of the Member Services Handbook for explanations of the following:

Current Ratio
Quick Ratio
Debt/Net Worth (Leverage)
Inventory Turnover (Days)
Accounts Receivable Turnover (Days)
Accounts Payable Turnover (Days)
Cash Conversion Cycle (Days)

ADVISED

• Explains lease information on all locations as advised by the subject, including expiration date.
• Details insurance coverage as advised by the subject.
• Details security system as advised by the subject.

REAL ESTATE

• Indicates the value of properties owned by the company or the proprietor and the extent to which it is financed.

GENERAL REMARKS

• Summarizes the last available financial statement if current statement is not available.
• Provides additional detail on any current financial statement.
• References current trends in performance, financing, etc.
• Substantiates basis for rating.

RECORD INFORMATION

• Evidences known financing statement (UCC-1 Filings) where security interest has been granted by debtor as a means of obtaining trade or bank credit or leased property.
• Reflects known tax liens placed against the company
• Reflects known legal action instituted against the subject during the past five years which remains unresolved.

BANK REFERENCES

• Indicates types of deposit accounts maintained as well as reported loan facilities and borrowing experience with a particular institution.
• There is often more than one bank with more than one loan or deposit account.

COLLECTIONS

• Lists all claims that are open and pending with the JBT Collection Department.
• Lists all collections which have been settled in full during the past year.
• Lists all claims which were regarded as uncollectible during the past three years.

TRADE REFERENCES

• Each reference is from a different trade vendor or supplier
• Information provides a payment trend in chronological order for trade information over the past seven months.
• Information includes the highest amount of credit ("HRC") extended by a supplier over the six-month period prior to the reporting date, the amount currently owing, any amounts which are "past due", the selling terms (if available), and the general manner of payment, both currently and during the past six-month period.

ANTECEDENTS

• Establishes business structure (corporation, partnership, sole proprietorship, etc.).
• States starting date of business.
• Details ownership history.
• Outlines employment history and background of principals. Provides a chronological history of significant business changes.

METHOD OF OPERATION

• Provides a description of the premises and the area in which the premises are located. Indicates if location is owned or leased.
• Describes the types of products and services provided by the subject company.
• Provides the number of employees.

RATINGS

• Estimated Capital
• Estimated Capital is not net worth.
• Estimated Capital represents primarily the total cash convertible assets (usually cash, marketable securities, accounts receivable, and inventory) less total debt (excluding real estate mortgages if such debt is secured exclusively by the related property) based upon an analysis of the most recent figures submitted.
• Estimated Capital represents a "liquidity cushion" in the event that certain assets are not readily convertible into cash in the normal course of business, thereby altering the liquidity of the company and its ability to pay within the credit terms granted.
• "Estimated Capital" ratings which include an "Alpha" designation indicate that the date of the financial information contained in the report is of sufficiently recent date. Capital ratings without an "Alpha" designation may represent estimates based upon either outdated financial information or current bank and/or trade reference information contained in the report. In some instances, interim figures may be posted without an "Alpha" designation.

CREDIT STANDING

• Numerical designation of credit standing (the last number contained in a rating) is principally a representation of the subject company’s paying habits with respect to trade vendors, with "1" representing a high level of quality and a "4" representing limited quality. However, this numerical designation may also be influenced by the financial condition of the company.

NO RATING

• The absence of a rating, designated by - , and also called a blank rating, does not mean that the subject is not worthy of credit. It does mean that a credit report should be ordered to determine why no credit rating can be assigned.
• A blank rating may be assigned for one or more of the following reasons:

1. Lack of adequate information.
2. Business tracked by JBT for less than one year.
3. Business in operation for less than three years.
4. Antecedents on principals declined.
5. Financial condition exhibits considerable leverage (liabilities far in excess of net worth).
6. Business sold with financial details on new owner not available.
7. All cases of financial embarrassment including bankruptcies.
8. Business has a suffered a loss by robbery, fire or flood and there is no insurance coverage.

"75"

Indicates a casualty loss has been sustained and the impact of the loss on the financial condition of the subject has not yet been determined.

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