A Financial Viability Assessment gives you an independent, expert view of a supplier’s financial health, helping you make more informed decisions before awarding or progressing a contract.
Designed for procurement and risk teams, Experian Financial Viability Assessments combine financial statements, commercial credit information and expert analysis to assess whether a supplier appears to have the financial capacity to meet its contractual obligations
A supplier may meet your technical, operational and commercial requirements, but do they have the financial capacity to deliver throughout the life of the contract?
Financial Viability Assessments provide a more detailed view of financial risk than a standard business credit check. Qualified chartered accountants review the supplier’s latest three years of financial statements alongside commercial credit information and consider the value and duration of the proposed contract.
The result is a clear assessment of financial strengths, weaknesses and potential risks to help your team make and document a more informed procurement decision.
A Financial Viability Assessment can be particularly valuable when:
Financial viability can be considered from tender planning and evaluation through to contract award and, where required, during contract execution.
Analysis of the supplier’s latest three years of financial statements, including financial trends and key ratios.
A 10-step financial risk rating that takes the proposed contract value and duration into account, helping you understand risk in the context of the contract you are considering.
A clear explanation of the supplier’s financial position, including areas such as liquidity, profitability, leverage and earnings stability.
An expert opinion on whether to proceed with the contract, including the rationale behind the assessment and potential risk mitigation measures to consider.
Consideration of relevant current and previous projects, contingencies, guarantees and subsequent events.
Financial analysis is supported by commercial credit data, including information relating to company structure, directors, payment behaviour and adverse events.
International assessments can also draw on global business information where required.
Financial Viability Assessments are part of the Experian reports and monitoring solutions available to TenderLink buyers.
They can complement the procurement checks you already undertake by providing additional financial evidence when assessing suppliers before award or when a more detailed review is required.
Talk to our team about your procurement, the supplier you need to assess and the contract decision you are making. We can help you determine whether a Financial Viability Assessment is the right option for your needs.
