Small companies in the Czech Republic can now have their financial health evaluated by an independent credit agency. A project by the Prague Economic Chamber and rating agency CCB is designed to support small- and medium-sized companies (SMEs) in their relations with financial institutions and large market players. For a fee of Kc 3,800 (US$157), companies with an annual turnover of less than Kc 600 m a year can be evaluated under the Rating MSP programme and receive a rating that they can take to the bank.
"If a rating is high, a company can obtain a number of advantages including a speedier processing of a loan request or lower advance payments for electricity," said Pavel Finger, a CCB board member.
Companies are rated on their financial stability and ability to repay loans. It's up to the companies whether they want to release the results. A good rating can boost a company's ability to borrow money to expand or start a new project.
