Credit and Credit - World Credit Organization

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1.2 Credit establishment and credit investigation

According to the different purposes of the client, credit products (note: for the convenience of expression, we refer to credit business and services as products) can be divided into Lixin products and credit investigation products.

1.2.1 Lixin

Building credit refers to the sum of behaviors that an organization entrusts a third-party credit agency to conduct credit investigation and evaluation of its own credit situation in order to establish its own credibility.

1.2.2 Credit investigation

Credit investigation refers to the sum of behaviors that an organization entrusts a third-party credit agency to investigate and evaluate the credit status of its customers and partners in order to reduce the risk of dishonesty.

1.2.3 The difference between Lixin and credit investigation

The difference between Lixin and credit investigation is:

First, the commissioning purposes of the two are different. The purpose of the former entrustment is to establish its own credibility and improve the management level, while the purpose of the latter entrustment is to reduce the risk of dishonesty.

Second, the objects of credit work are different. The object of the former credit work is the client itself; the object of the latter credit work is the client or partner of the client.

Third, the focus of credit service is different. The focus of the former credit service is credit evaluation, while the focus of the latter credit service is credit investigation.

However, it needs to be pointed out that the classification of Lixin and credit investigation is only conceptual and not absolute, because the business of Lixin includes elements of credit investigation, and the business of credit investigation also includes elements of Lixin.

The above content is excerpted from "Introduction to ICE8000 Credit Knowledge" (written by Fang Bangjian, free to use, but please indicate the source)