Extending credit to customers can increase sales, but if customers fail to pay on time, then your business suffers. Commercial credit reports help you make better decisions.
Commercial Credit Reports are Readily Available
Through Dun & Bradstreet, you can easily pull a credit report on another company, and have access to reliable and accurate information as you make business decisions. With these credit reports in hand, small businesses can review the credit history of any company they are considering doing business with.
Credit reports should be reviewed before extending credit to any customer. They should also be reviewed when selecting suppliers or business partners. Many of these commercial credit reports include a simple Risk Summary which is a color-coded, red, yellow, green assessment of credit worthiness.
While it would be unwise to extend credit to a company in red, it could be equally harmful to select that company as a supplier or a sales partner. Knowing they are considered a risk could guide any negotiations, and lead to protections for your business.
Commercial credit reports also include information on how timely a company pays its bills, a review of any legal filings such as bankruptcies and liens, and details on the company’s ownership structure, along with other important information.
Analytical Support Is Also Readily Available
Dun & Bradstreet also offers services that greatly increase the value of a commercial credit report. They can provide a credit limit recommendation along with scores that predict the likelihood of a business facing failure or financial stress over the next twelve months.
PAYDEX® scores are a metric that you can use to quickly assess how a company is likely to pay its bills in the future. Dun & Bradstreet calculates this by reviewing the company’s payment patterns with other vendors in the past. Trade payment details are available so that you can complete your own analysis.
Recognizing that credit quality can change, you can also use a monitoring and alerts service to receive email notifications when there are changes to any report that you have purchased.
Commercial credit can help you grow your business when used smartly, and commercial credit reports are an important tool for any business offering credit or partnering with other businesses.