Before you supply any services or products with deferred payment, you want to be certain that your invoice will be paid. A credit report gives you a snapshot into the financial situation of your customers, based on a number of standard scores.
A credit report shows you immediately how your customer scores financially. If it is a low score, it will definitely be worth comparing that customer with the rest of the sector. It may be that your customer actually sets a positive benchmark.
Having all of the information available in a single credit report gives you a nuanced picture of your business relationship, both in terms of the risk and the growth potential. It also enables you to negotiate from a broader perspective and still make a sale, despite the possible risks.
The demand for reliable data in other countries has risen enormously in recent years, which is not surprising since more and more companies are reaching out outside borders to build new business relationships. This, in turn, could mean higher risks and making sure you are up to date before it’s too late.
By having a good insight into the financial situation of foreign companies, you are able to seize your commercial opportunities better and limit your risks, all of which makes your company grown stronger when it does business internationally.
It takes no time at all to check your business contacts in all European countries (and far beyond) and identify possible opportunities and risks. We will provide you with a summary of all the financial parameters you need, enabling you to assess your international business contacts and partners evenly, consistently and at a glance.
If you need to take multiple credit decisions quickly and in a short space of time, obtaining a credit advice is the solution. A credit advice tells you how much cash a company is able to free up in the short term to pay its invoices. NB: this does not necessarily mean that the company will also pay its bills! To find that out, you need details of the company’s payment score and payment behaviour.
With the credit advice option, you are looking at a single type of behaviour that is simple to interpret. That way, everyone in your company uses the same information to make decisions and so you receive uniform assessments.
Subject to the circumstances, you may opt for a specific credit report. This may range from a fully documented company report and important and complex decisions, to a more limited information report.
The right information at the right time and in the right place. Different departments use different information. For example, your finance department will want to know whether it is safe to grant a customer credit. Your sales team, meanwhile, wants to know whether the person in charge of the company is also responsible for other companies. That way, everyone is able to take the right decision based on specific business information.
There is something different to say about every company. Apart from the annual accounts, there are plenty of other sources that enable you to form an accurate and complete picture of a company. Even for a sole trader, where no annual financial statements are available.
The credit advice tells you whether your customer is able to pay you in the short term. The payment score and payment behaviour information tell you whether that customer will actually do so or not.
An annual financial statement that is at least seven months old corresponds with a past snapshot. Actual payment experiences on the other hand give you a current picture of your business relation. They go beyond traditional and more static financial figures. And payment behaviour information tells you how your customer is paying right now, today, thereby completing the overall picture.
The payment score, ranging from 0 to 100, tells you whether your customer will actually pay you. The higher the score the better. To calculate this score, Graydon applies a weighting calculation to the experiences provided to us by all suppliers. The most recent observations are the most meaningful.