A Nugget of Wisdom and Best Practice: The Credit Manager’s Customer Scorecard (CMCS-II)

From the Currency of International Trade – Part One

A Nugget of Wisdom and Best Practice: The Credit Manager’s Customer Scorecard (CMCS-II)

CMCSii no nuggets

The holistic and comprehensive nature of credit management requires the credit professional to construct a framework for due diligence. Another key tool is the Credit Manager’s Customer Scorecard (CMCS-II). We can say that the CMCS-I and CMCS-II are  the Siamese twins of due diligence.

The CMCS-II comprises 5 building blocks. Each block has to be laid and cemented. These blocks strengthen the foundation of the credit file and guide the credit professional in the due diligence path. The five blocks are:

  • Block1: 10 Fundamental Cs of credit
    Subjective (qualitative) factors [trade & bank references; Guanxi; forecast economic reports; history and country assessment]
    Objective (quantitative) factors [financial analysis; payment history; historical economic data]
    Mixed factors [credit reports; credit scoring, etc.]
  • Block2: Avoid the bad Cs of credit
  • Block3: Security instruments and guarantees
  • Block4: Credit insurance
  • Block5: Trade financing

This is another nugget I expound and explain in the course: The Currency of International Trade: Part One—Highlights on Credit

Credit Currency Due Diligence

For details, please click the link:


Eddy A. Sumar, MBA, CCE, CICE, and CEW, is the Founder of ERS Consulting Services in Rancho Cucamonga, California; he is an International Trade Financing Consultant; a Consultant for the Center for International Trade Development (CITD); a member of the Guidepoint Global Advisors, and an Associate of Quote 2 Cash (Q2C). Mr. Sumar is a research consultant, author, and a public speaker and enjoys writing and traveling. Contact: e-mail: ealberto@aol.com.


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