Manage My Business Credit

  • CreditBuilder™: Add good payment history to impact your D&B® scores
  • CreditMonitor™: Monitor your credit file in real time with detailed info about changes to your D&B scores
  • CreditSignal®: Receive free alerts to changes in your D&B business credit file

Manage My Business Credit For Me

Monitor Another Company's Credit

Not sure which product is right for your business?

Our Credit Advisors are standing by

to assess your needs and help point
you in the right direction.

Call Today Call 800-700-2733


Ask about our Concierge service.

Business Directory

Business Services

  • VERIFIED™: Get your business data VERIFIED™ to help protect your business identity online
  • Business Shield: Helps protect your company by alerting you to potential warning signs of business identity theft
Help manage your
business identity and
reputation


Let us distribute your VERIFIED
information
to up to 90% of US
consumers searching online.

Call Today Call Today! 800-700-2733

Sign up for FREE today!
Help protect your business identity against inaccuracies and business misrepresentation online and across social media properties
Get it now text

Enterprise Solutions

If your company is looking for a custom enterprise data solution, contact us at
1-800-264-0947 or businessdevelopment@dandb.com
Lead Advisor
Better Data, Better Results
Whether you're a list professional or a first-time marketer, our lead experts will work with you to help you target, segment, and select the list most likely to work for you. Learn More.
Call today 1-855-455-8039

Free D-U-N-S Services

Expedited D-U-N-S Services

  • Small Business Starter™: Promote your business online and get an expedited D-U-N-S and business credit file
  • DUNSFile™: Get a D-U-N-S and basic business credit file in 5 business days or less
Company Update
Update your company info today. It's free!
Review and update your existing D&B® credit report, dispute inaccuracies, add financial statements, and review public filings.

Don't have a D&B report? Get your FREE
D&B D-U-N-S now.
Get Started

The ABC’s of Credit Risk Management

Maximizing Opportunity Through Credit Risk Management

Credit Risk Management“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger–but recognize the opportunity.”- John F. Kennedy, Speech in Indianapolis, April 12, 1959

It’s important to reconcile credit risk management strategies with the broader objectives of your company. The pressing issue is always minimizing your company’s exposure to risk, but meeting sales goals is equally important when it comes to growing the business and gaining managerial support.

Ultimately, the goal of credit risk management is to optimize profitability by balancing opportunity and risk in the most favorable way possible. This means maximizing sales volume while minimizing the risk involved. Open account terms can encourage buying, but every sale that’s not conducted on an upfront cash basis carries some risk that the seller will not be able to collect the money owed.

4 Effective Credit Risk Management Strategies

Creating and implementing effective policies to improve profitability while controlling for risk and losses is a demanding task, but one that can be achieved with a sophisticated approach that takes advantage of all available credit risk management strategies. There are a number of basic approaches to managing credit risk.

1. Avoiding Risk — Refusing to issue credit to high-risk accounts is part of most credit risk management strategies. However, many of your potential customers may fall into the “high-risk” category. Drawing an appropriate threshold that balances risks and rewards is key in this regard. If it’s too high, sales may suffer; if it’s too low, unacceptable losses can occur. An empirically tested threshold that’s in line with overall company goals is important to getting high-level buy-in and optimizing profitability.

2. Controlling Risk — Creating a plan to reduce credit risk in existing accounts can help regulate the level of risk your business is exposed to.

3. Transferring Risk — Risk can be transferred through trade credit insurance, financial guarantees, and other means to offload or minimize risk exposure. As banks, insurance companies, and other major creditors tend to view their risk on a portfolio-wide basis, this has become a popular option that can be achieved through a variety of mechanisms.

4. Accepting Risk — Finally, accepting high-risk accounts can be instrumental for businesses that have excess inventory, adequate reserves, high profit margins, or that are looking to aggressively expand market share.

 

Author:

After graduating with a B.A. from Occidental College, Ben Wills worked for several political non-profits on economic policy, government transparency, and public accountability issues.