The xChange Risk Rating is an important metric in our Leasing Marketplace, visible to all members. Displayed on each company's profile, this rating helps suppliers assess potential partners by indicating the risk level of container-using companies. It’s based on key factors such as performance, payment history, and activity within the xChange leasing marketplace over the past 12 months.
The xChange Risk Rating makes it easier for suppliers to make informed decisions and understand each container user's reliability. It guides them in choosing business partners and determining whether additional insurance is needed when engaging with particular companies.
In This Article, You’ll Learn:
How to Improve Your xChange Risk Rating
What Each Rating Means
Every company that has leased containers from suppliers on our marketplace has an xChange Risk Rating, divided into five levels. Each level shows typical traits like payment behavior, wallet balance, and how well they follow leasing terms. The table below gives an example of these traits for each level. However, ratings can vary—some companies may have a lower rating because of one specific factor rather than an overall pattern. Please use this as a general guide, as individual factors can affect the rating differently.
Risk Rating Levels
| Attribute | Level 1: Very Low Risk |
Level 2: Low Risk |
Level 3: Moderate Risk | Level 4: High Risk | Level 5: Very High Risk |
| Credit Bureau | Excellent payment performance; very low risk of business failure | Good payment performance; low to moderate risk | Average payment performance; moderate risk | Concerning payment performance; moderate to high risk | Poor payment history; high risk of business failure |
| Country Risk | Low political/economic risk; stable business environment | Moderate risk; stable with minor concerns |
Moderate to high risk; potential instability |
High-risk environment; frequent changes | Extreme risk; high possibility of sanctions or restrictions |
| Wallet Balance | High balance with steady positive cash flow | Adequate balance with occasional changes | Fluctuating balance; some financial stress | Low or negative balance; cash flow issues |
Consistently negative balance; severe cash flow problems
|
| Payment Behavior | Pays on time; proactive in communicating about invoices | Mostly on time; rare reminders needed | Regularly late; reminders often needed | Often late; issues with communication | Consistently late; frequent payment disputes |
| Leasing Terms Compliance | Always picks up and returns containers on time; many successful deals | Usually punctual, with minor delays or issues | Some delays in pickups/returns; issues in completed deals | Often late in pickups/returns; non-compliance or disputes |
Frequent non-compliance; serious penalties or legal actions |
How to Improve Your xChange Risk Rating
A better Risk Rating can lead to more competitive leasing offers and make you a more appealing partner for leasing suppliers in the xChange network. Improving your rating may also help increase your credit and container limits, giving your business more flexibility.
Steps to Improve Your Rating
1. Submit Important Documents to Your Account Manager: These help us assess your company’s reliability more accurately.
- Audited Financial Statements (balance sheet, income statement, and cash flow statement), preferably covering at least two years.
- Bank Statements (last three months)
- References
- Proof of Insurance (e.g., general liability insurance)
- Bank Guarantees
Your privacy and security are our top priorities, and we handle your documents with the highest standards of care, keeping them secure and confidential. Many partners have seen improvements in their ratings after submitting these documents.
2. Maintain Key Behaviors:
- Payment Behavior: Always pay invoices on time, and consider upfront payments.
- Performance Behavior: Pick up and return containers on time and within the agreed free days.
- Transaction Volume: Higher transaction volumes with consistent on-time performance can boost your rating.
By following these steps, you can improve your xChange Risk Rating and strengthen your profile on the marketplace.
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