To manage risk in the credit and capital markets it is critical for lenders and credit suppliers to understand the relative financial health of counter-parties, customers and suppliers. Effective credit extension decisions cannot be made without superior analysis generated by forward-looking, unbiased tools.
The credit crisis and recession has devastated small and mid-sized businesses. Getting a bank loan or securing capital from investors is a big challenge for small businesses. Banks have become extremely cautious in lending to small businesses. To be successful in securing credit you’ll have to demonstrate that you are a good credit risk, that your company’s prospects for growth are strong and that your business model is sound.
Why Credit Score is important?The quality of your credit rating and financial health form the basis for decisions other businesses make about you. Managing your business to improve your Credit Score will improve your company’s financial health. A strong Credit Score indicates good financial health and is used by lenders, capital providers, customers and suppliers to determine:
- How much business credit a supplier will extend to you
- What interest rates you will pay
- How much money lending institutions will loan you
- How your customers view you
- What your insurance premiums will be
- The level of potential investor interest
Sum2 utilizes Altman’s Z Score method to determine fundamental financial health ratings. The Z Score credit rating is valid measure of financial health for any public or privately held corporation. The Z Score rating methodology is a proven credit risk indicator that is widely used by banks, investment managers, Fortune 1000 companies and small to medium sized enterprises to determine and manage risk. Sum2’s clients use the Z Score rating products to determine financial health, remain in compliance with loan covenants, and assess credit worthiness of clients and mission critical suppliers.
Altman’s Z score method examines fundamental financial data derived from a company’s balance sheet and income statements. A credit rating is generated by the use of ratio analysis that yields valid comparative results regardless of the currency utilized. Working capital, earnings, reinvested earnings and leverage are integrated into a composite credit rating score. The components and standards are similar to those used by traditional lenders. It is an easily understood approach that provides comprehensive financial details not available with the standard agency reports.
Click here to access Sum2’s Z Score Input Template.
Click here to access zip file of sample reports. Palm Corp Z Score Report.
We recommend supplementing the analysis with trade reports from firms like the Credit Management Association (CMA) or Experian and others for their pertinent data and services.Businesses that extend credit can determine cutoff scores needed to qualify for credit as their risk tolerance and economic conditions change. Lower scores and classifications indicate higher probabilities of default.
Credit ratings must include a careful analysis of the income statement, balance sheet, changes in financial position and key metrics along with consideration of trends, economic conditions and other available data.
Credit|Redi is a set of business assessment tools that helps businesses determine credit worthiness. It is a critical business tool SME’s need to incorporate to better manage and assess credit risk.
More information on how to manage credit risk can be found here: Credit|Redi
It rained all week in Northern New Jersey. The entire Passaic watershed is saturated and as it drains the Great Falls roars with the swelling volume of racing water as the river makes its way to its ultimate release into the Atlantic. Its a good metaphor for the surging rebirth of Paterson as a revitalized center of commerce and culture.
Long a typical neglected northeastern industrial city in decline, Paterson is experiencing a vibrant transitioning and repurposing of it’s heritage as a manufacturing center thanks in part to The Art Factory.
The Art Factory is an incubator encouraging the formation and growth of the creative arts industry. Tourism and cultural enterprises that attract tourists are critical economic drivers necessary for the rebirth of Paterson. The Art Factory’s offering of working space for artists and commercial enterprises is a critical initiative seeking to build on The Great Falls Historic District’s recent National Park designation that anchors the city’s hopes for a long awaited revitalization.
The Art Factory is busy renovating the once dilapidated Dolphin Jute factory space and filling it with the creative energies of up and coming professional artists looking for commercial acceptance of their art.
Memorial Day weekend, The Art Factory’s Art Walk showcased a torrent of local artistic talent. The volume of exhibits compliments the range and scope of quality art that met and exceeded the expectations of the many patrons and enthusiasts eagerly exploring a labyrinth of cavernous exhibition rooms located throughout the century old industrial complex.
Indeed half the fun of The Art Walk is making your way through the multiple floors of exhibition space. The thrill of walking stairwells and darkened brick laden passageways opening into old shop floors flooded with art, bathed in the light of industrial windows framing cityscapes of surrounding street life, wooded hills of Garret Mountain and historic skyline of Paterson. Or descend into the bowels of the old factory’s basement storage areas carved out of granite bedrock bleeding water, showcasing multimedia sculptures divined from the subterranean strata of broken bricks, steel scrap, rubbish bins, wooden pallets, cardboard packaging, dexterous hands and fluid imagination.
One of the great pleasures of The Art Walk is experiencing how the art interacts with industrial space. A virtue of The Art Factory is its mission to repurpose dormant manufacturing space and refill it with the creative energy of artists. A great portion of the art on exhibit in The Art Walk addressed the idea of repurposing, industrial stasis and the human and ecological cost of industrialization.
The idea of repurposing industrial artifacts and disposable waste to portray the human cost of rampant consumerism was intelligently portrayed by conceptual artist Aleksandr Razin and his bold installation Jurassic Park.
Comprised of 4 extensive installations filling a large basement space; The Mosquito, (68’x 20’ x 12’); The Paterson Butterfly (51’x54’x12’), The Grasshopper (35’x45’x13’) and The Fly (54’x55’x20’); Jurassic Park was fully constructed from materials culled from the excessive waste of our throw away consumer society. Each installation appears as though its belongs in the dank basement of an industrial complex.
One piece, The Caterpillar, is a boxed construction of corrugated cardboard enclosing an inner lighted workplace of benches, machines, tools and cabinets. One can look inside the caterpillar through windows or enter the piece from an hidden doorway. From the outside the cardboard construction looks like its about to collapse from flimsy construction materials. A caterpillar suggests transition but once inside the caterpillar I imagine a shift of workers trapped in a dangerous workplace at risk of imminent collapse. Certainly a timely observation given the recent catastrophic collapse of a Bangladesh textile factory killing over 1,000 workers manufacturing high end clothing for some of the leading western fashion brands.
The Mosquito installation was equally unsettling. Inside The Mosquito we find outdated school rooms. We can only surmise how school systems are challenged by obsolete teaching methods and institutional distress. Are schools like a mosquito, sucking the life blood out of society’s young minds? To paraphrase the artist statement, Mr. Razin asserts, the size of the installation suggest extinct dinosaurs and that out of control consumerism and toxic waste is threatening life on earth.”
Another large subterranean installation offers a complex tube structure of air blown inflated denim. A haunting soundtrack of industrial sounds echoes through the room; as sparse lighting casts long shadows of the piece and patrons onto walls of bedrock and weathered brick. The patron assumes the role of a consumer who becomes complicit enablers trapped in the denim web of global trade built on the exploitation of third world textile workers.
Jonah The Prophet and The Gates of Hell completed a trinity of subterranean social commentary installations. Jonah, a suspended wire piece portrays a figure devoured by a fish. The room’s floor was covered in broken brick. Scattered cubicle panels lined the walls. Here in the lowest level of The Art Factory we have been consumed, entrapped in the prison of industrial monotony.
The upper floors of the show mostly featured portraiture, photography and small sculptures. An installation on Industrialism portrayed the hard edges of industrial capitalism. An oil painting, Made In China sympathetically portrays a child attached to a sewing machine. Its a striking depiction of western consumerism complicity in enabling child labor.
With the exception of the basement installations, for the most part politics and social commentary was absent from the Art Walk. The pieces were clearly positioned for sale; and as I said earlier the quality and subject matter of paintings make this art highly marketable. Refreshments, bands and a wedding added an air of festive lightness to the day and set a consumer friendly atmosphere to The Art Walk.
And that’s how it should be. Though I couldn’t discern any major artistic breakthroughs, commercial development and the art of capitalism is the star of this show. Bravo The Art Factory and The Paterson Art Walk. The journey back from economic doldrums has begun in Paterson and The Art Factory and The Art Walk is a big first step in that journey.
Music Selection: Fats Domino, I’m Walkin
risk: urban renewal, small business, tourism, culture
When the mundane becomes revelatory, when banal pronouncements are considered startling epiphanies, when orchestrated spectacle is considered the apex of statesmanship; a society is fast approaching the finish line in its race to the bottom.
The corrupt leaders of society’s broken institutions remain busy spinning a self serving zeitgeist of denial, sowing gardens of ubiquitous ambivalence. The liturgy of mass self delusion anoints a polity comfortably numb and safely ensconced in a political paralysis; keeping the Bozos bouncing along on the bus sans wheels, happily enthralled in the reverie of their disillusionment.
Sarah Palin, looking slim and extremely fit slugs down a mega calorie Big Gulp on the CPAC dais. Sarah’s slurp becomes an iconic moment in GOP history, as fawning star struck conservatives believe it to be the symbolism of a new Statue of Liberty.
Morning Joe stuffing handfuls of Captain Crunch into his mouth to tweak the eat healthy nose of liberal manikin Mika, cheers the American driving public for making the 6 mpg Super Duty pickup the best selling truck in the USA. Morning Joe relishes any opportunity to confirm the resplendent truth of America’s voracious appetite for radical entitlement.
Newly elected Pope Francis closes his first Sunday address by advising visiting pilgrims to “have a good lunch” and the media falls all over itself with adulatory elation.
In a world understood as a branded sound bite, the affirming credo an individual adopts as holy gospel is self serving institutional propaganda that vigilantly defends the status quo.
In such a world, sound bites have become a school of famished piranhas that are devouring the body of rational understanding and the ability to peek beyond the veil of obfuscation.
The messages and symbolism signaled from our leaders and political celebrities is clear, loyal constituents are offered an absolution to remain stuck in the certitude ensuring the perpetuation of failing institutions badly in need of reform.
The CPAC crowd cheers Palin’s clownish moxie as she charges the battlements of Bloomberg’s Nanny State. Though I wonder if Palin’s salute to Seven Eleven was more of a product placement exercise than astute Kabuki theater; Palin’s masterful pandering played well to the partisans. She brought down the house and successfully sidestepped the issue of a commercial food chain that is progressively poisoning their customers with unhealthy food due to lax regulatory oversight, harmful food additives and corn fructose syrup infused processed food that is driving an obesity epidemic amongst the poor and minorities residing in the food deserts of America’s cities.
Palin’s showmanship appeals to the growing libertarian streak in the GOP. Let the market decide is the mantra. The jury is out but when the toxic food chain has killed off enough of the process food industries customers, General Foods will hire a Stanford MBA as a new product manager to design and market better foods for a better world. After all that’s how responsible job creators work.
Mornings Joe’s insistence on his free market right to be a mindless consumer is codified in the divine celestial ledgers of Laissez-faire capitalism. His fattened bank balance is the sole moral imperative to drive an inefficient gas guzzling truck that poisons the environment with carbon emissions. This is the same mind set that insists on building vacation homes on barrier islands. If a major storm destroys the dwelling so be it. FEMA and private insurance have socialized the risk to preserve the right of these homesteaders to settle on endangered land, tipping into the swelling seas, fueled by a changing climate brought on by excessive carbon emissions from Morning Joe’s Super Duty.
In the aftermath of the Newtown Massacre the yearning of citizens to strengthen gun control laws is met by the intransigent commercial interests of gun manufacturers. In a society bleeding from gun violence the NRA got busy greasing the palms of senators with filthy lucre to encourage diligence to protect 2nd amendment right to market high powered automatic rifles and 30 round magazines that can spray instant death into a room full of 1st graders.
Wayne LaPierre, the CEO of the NRA gave an impassioned speech at the same CPAC conference pointing to “the Washington elites” and “liberal media” as the root of all evil. States LaPierre, …gun control advocates “insult [us], they denigrate, and they call us ‘crazy’ for holding fast to [our opposition to gun control]. In their distorted view of the world, they’re smarter than we are; they’re special; they’re more worthy than we are; they know better than we do,” he said. “The liberal media can keep hating on me, but I’m still standing.”
How the CPAC attendees and the three million members of the NRA can fail to see the irony in Mr. LaPierre’s condemnation of “Washington elites” escapes me. To be sure, like many CPAC attendees, Mr. LaPierre and the NRA are fully integrated with the elites of Washington. In point of fact many are on the NRA payroll. His pernicious attack on a free press belies his unquestioned fealty to the constitution.
Which brings us back to Pope Francis. He is hailed as a much needed change in a scandal ridden Vatican. The global prevalence of sexual abuse by clergymen and the institutional protection of predatory pedophiles continues to trouble the church. Money laundering and other untoward financial transactions conducted by the Vatican Bank is another explosive issue that continues to fester. The rising voices of women and LGBT communicants seeking reforms to fully enfranchise them as equal citizens in the church are liturgical and theological issues that will continue to be repressed. These questions beg an urgent response from the ossified paternal hierarchy that resists transparency and fails to transcend practices that sacrifices the faith in service to the institutional religion.
Yes the monied pilgrims that made their way to Rome will enjoy the day and most surely find a wholesome meal to eat. What will sate today’s pilgrims and sustain the future generations will be to sit at an inclusive communion table to richly feast on the bread of truth. Throw the institutional banalities into the ovens to stoke the fires capable of baking a rich wholesomeness into the glorious bread of life.
Music Video: Fleetwood Mac, Hypnotized
Risk: political, religious, psychological, cultural
As a strengthening Hurricane Isaac takes aim on The Big Easy, seven years to the day of Katrina’s catastrophic devastation, an even bigger bag of wind is set to be unleashed tonight in Tampa as NJ Governor Chris Christie takes the podium as the GOP’s Presidential Convention keynote speaker.
For the past week Chris Christie has been the topic du jour of all the news shows. Morning Joe, Good Morning America, News 12 New Jersey and the front pages of the local press have paraded and fawned over the GOP’s ascending star as if he were the second coming of Abraham Lincoln.
Journalists ask Christie if he intends to unleash his “fire and brimstone” Jersey hubris during his keynote speech. His tough talking, take no prisoners’ attitude seems to be all the rage in Republican Party circles these days. When GMA host George Stephanopoulos asked Christie if he represented the GOP mainstream Christie answered, “I’ve been to over thirty states since my election as Governor and everyone has welcomed me with open arms. With me you know who you’re buying.” Indeed Christie’s value as a political celebrity is rising. In his brief tenure as Governor he spends a lot of time jetting about the country, politicking for himself and the GOP. He’s been out raising funds for his reelection campaign and his coffers are overflowing with out of state money from his well heeled big time 1% contributors. Mr. Christie’s discerning buyers know what they are purchasing. His hubris is a nice word for his arrogance and opacity that are the hallmark of the political deals he’s cutting for his out of state friends when he arrives back home in the Garden State.
Christie’s supporters love his tough talking style but his tough talk is nothing more than the arrogance of power, the political and economic elites employ to cover their back room deals. Christie’s tough talk is nothing more than a front to deflect. When a reporter asked Christie about failing water delivery infrastructure and its impact on public health, the tough talking Governor answered “Did I say on topic? Are you stupid? On topic, on topic. Next question,” Christie said to the reporter. “Thank you all very much and I’m sorry for the idiot over there.” Christie also scored big with anti-union and privatization of education supporters by calling public school teachers, “drug mules”. Its a denigration unworthy of a governor and a damaging characterization of professionals working within a systemically challenged public school system.
Yeah Christie’s a real bad ass tough guy. When a Navy veteran asked for more details from Christie about the proposed merger between Rutgers Camden and Rowan University, he called the gentleman an idiot and used the power of his pulpit to brow beat and insult the man; who had every right as a citizen and taxpayer to receive a respectful reply to his question. This week Christie is crowing that he finally closed the Rutgers/Rowan deal with the bipartisan help of his lap dog democrat friends; as details concerning the financing and costs of the project remain obscure. It will be left to vigilant citizens to follow the money and see where and how state funds will flow into which private hands.
Yes Christie and his GOP supporters may love his tough talking but I suspect they pay a premium for the Christie brand because he knows when to keep his fat mouth shut. Sure their thankful when Christie refuses to shed any light on his business dealings and political moves. Christie’s less then transparent appointments of commissioners to the NJ Highland Commission allowed the governor to pack the oversight board with pro-development interests. The NJ Highlands is a sensitive watershed region for millions of state citizens. In a densely populated state like New Jersey, protection of water resources and environmental conservation should be priorities but out of state El Paso Corp has eminent domain to dramatically expand its pipeline through the ecologically sensitive area to deliver natural gas extracted from the Marcellus Shale deposit. Is this the fruit of Mr. Christie’s cross country road show to interested buyers? Christie’s short term profit is New Jersey’s long term problem.
In another strange case of the bloviating governor going mute is his refusal to provide insights into his interests and practices in a privately run prison halfway house business that regularly receives state funded taxpayer money. Governor Christie, “the entrepreneur” catches a bad case of laryngitis when asked to provide insights into his cashing in on the privatization of the prison system and the rent seeking practice of his company using government funds to provide substandard service.
Yeah they’ll be a big wind blowing through Tampa tonight that will rival anything Isaac can throw at New Orleans. Christie will crow about the New Jersey miracle since his governorship began but statistics show that the state is lagging its Mid-Atlantic rivals. Facts and politicians seem to be two mutually exclusive matters so it shouldn’t present an obstacle for Christie to say or claim anything the tough talking Jersey Dough-boy claims as truth.
This is particularly true of a fact based, reality challenged Republican Party that believes there is no science to support climate change, the idea that public schools are a liberal conceit, the notion that women rape victims can’t get pregnant, progressives are enemies of the state and to preserve the constitution we must withhold the rights of some citizens. If you think that this is an unfair shot at the GOP mindset, did you see the GOP California poster of Chris Christie riding a surfboard? Talk about a problem with the concept of reality.
Music Selection: Beach Boys, Surfin Safari
Risk: truth, transparency, civil discourse, consensus