Credit Reform
Debt is one person's
liability, but another
person's asset

Contact us
Credit reform ltd. is run by team of financial and legal professionals with more than 15 years experience in banking, credit risk estimation, risk management and debt collection. We believe that only a team with understanding of both sides, quantitative aspect affecting the valuation and operational know how, providing usable and robust work out strategy with optimal execution can yield the best performance for the client.

In light of aforementioned team strengths a list of services includes: debt collection, credit risk estimation, credit risk management set up, optimal workout strategies, NPL valuation, advise on credit limit systems, advise in management consultancy,. Due to regional cooperation and experience in these markets we are a reliable partner in all countries of former Yugoslavia.
Our business model
is based on 4 pillars
In light of aforementioned team strengths a list of services includes: debt collection, credit risk estimation, credit risk management set up, optimal workout strategies, NPL valuation, advise on credit limit systems, advise in management consultancy.
Credit Reports&Collection
Credit insurance
NPL Management
Credit Reports&Collection
Credit reporting

Credit risk is a significant risk factor in the economy both on a macro and micro level. Since credit risk is always an asymmetrical type of risk, the downside from taking on credit risk is far greater than the premium received for taking on credit risk. Thus one needs to put special emphasis on modelling and understanding it.

A team of seasoned professionals helps client estimate, mitigate and monitor credit risk Within our line of services we support the client with either tailor made or custom made credit reports and in-time information

  • Once bilateral agreements fail to provide results the legal way remains
  • Although the bilateral understanding is always preferred option resolving open issues between parties, sometimes even the best efforts fail to provide results. Then the collection path turns to legal, where all details have to be presented – contracts, invoices, confirmation of supply of product or service,… The better documented the claim, the easier is for our experienced legal team to quickly enter into enforcement process thus giving you the best option to collect the payments – sometimes resorting also to securing it by taking charge on assets of the debtor.
  • From documentation preparation to search for alternative sources of repayment we offer full scale service aiming to the optimal outcome for clients
  • The sale starts already with contract where we would preferred to be asked for advice. Credit insurance, client financial information and the way you do business are just additional tools that you require to have a long term and profitable business relations. Regular reports, prevention sometimes does not cover it all - then NPL management or even as last resort legal action are to be taken. We provide all with the aim for our clients to get the best possible result and can backed by this infrastructure run a long term stable business.
Credit Limits
Expert guidance
  • Calculates price mark-up needed for each of the counterparties based on the total cost of credit risk.
  • Directs sales to economically most profitable and least risky counterparties using credit limits.
  • Enables fine tuning of the credit exposure on portfolio level.
  • Can use financial statement data to form an internal credit rating of the counter party, which can then be unified with external credit ratings.
  • Is flexible and accommodates the addition of new predictors or changes in operational situation.
  • Our approach merges various risk indicators to a unified risk measure, which can then be combined with counterparty characteristics to form a consistent credit limit for all counterparties in the trading portfolio. Furthermore the model allows the detailed adjustment of counterparty exposure on the portfolio level instead counterparty to counterpart bases.
  • In addition to limiting the credit exposure the model can segment counterparties and assign the required mark-up for them, based on the expected credit losses and economic capital contributions.

Credit insurance
Protect your sales
Customers have their own business and troubles
Although we note that you should know your buyers in detail, sometimes that is not possible. Knowing that your buyers can have their own troubles or have had adverse effects happening to their business, you may be caught by surprise.

Public information is available mostly only yearly with time lag
Reporting for official and regulatory purposes gives options to obtain a certain level of information on your buyers, however this obligation is in best case limited to public financial data once a year and possible interim reporting. The length of the time lag and the age of information are such that they cannot offer full scale support and comfort but must be used with additional tools.

Negative events mostly come as surprise
Almost all major negative corporate events come with an element of surprise and with almost no time to react to them. With surprise there is also a factor of loss that can happen as a result of it and can have a severe negative impact on the business.

Credit insurance not only prevents losses but also helps with pricing policy
Credit insurance is one way to limit the possibility of surprises, however it does not serve as a complete and water-proof shield. You may use the credit insurance as indication of how risky your buyers are and also change the pricing policy. You may increase price and/or cut credit terms in order to manage your overall business risk exposure.

Credit insurance as buffer and indication
Even with credit insurance a part of the claim will remain open and at a certain moment the credit insurance cover may be decreased or eliminated. Having this information in the right moment is essential as it will affect the way you will handle your business. We will provide the timely information and help you shape your risk policies that will optimize your resources.
NPL Management
When things take the unexpected turn
NPL valuation
  • Estimation of market and liquidation value using advanced techniques such as real option methodology and simulations based on stochastic models. This approach allows us to perform scenario analyses and gives us an edge through properly accounting for the payoff structure of the product.
  • Collateral valuation, bolstered by collateral value simulation including projections and negative scenario quantification and analysis.

Risk assessment
  • Our valuation approach is backed by a thorough bottom-up risk assessment of NPLs, offering us also a clear view at the ‘risk’ part of risk-return profile of NPLs.
  • The key of this is to identify key risk drivers and their characteristics of the entity, associated with a NPL.

Portfolio valuation
  • Our extensive knowledge and experience in quantitative finance and modelling enable us to appropriately value portfolios of NPLs (accounting for individual NPL valuation, portfolio interdependencies & state dependencies, negative scenarios…).

  • NPL valuation back-up
  • We offer standard products such as financial due diligence and independent reviews to back-up our valuations.

Active NPL management
  1. Restructuring/turnaround strategies
  2. (Non-core) asset disposal
  3. Liquidation strategies aimed at recovery maximization
Credit Reform
Credit reform ltd.
Stefanova 13a, Ljubljana
+ 386 8 385 60 10
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