A credit report (also called credit report) is a comprehensive report that provides insight into the creditworthiness of a company. The report is compiled with data from various sources and analyses. With this data, the requester of the report can decide whether or not he wants to work with a customer. With such a report you immediately see which risks are associated with a collaboration and which conditions would best suit that collaboration.
What’s in a credit report?
A comprehensive credit report provides an estimate of both the current and future financial situation of a company. In addition, other matters are described in a credit report, such as the company structure, any negative media reports, the development of a company and how the company performs compared to comparable companies (so-called benchmarks).
With all this information, a credit limit with a credit score is then determined. On the basis of this, you as an entrepreneur can make a good estimate of the creditworthiness and reliability of your business partner. So a lot of trouble can be saved with this!
Why are you requesting a credit report?
There are several reasons to request a credit report. We name 3.
- Protecting your cash flow
Late payers and defaulters have a major impact on a company ‘s cash flow and can even cause a company to go bankrupt. A report can be used to limit these kinds of financial risks.
- Small investment, big return
Requesting a report is relatively cheap in relation to the risk you run in the event of non-payment of a large amount. This small investment can pay you a lot in the long run.
- Time savings
In a credit report you can see in advance what the payment behavior of a customer is. Does the customer always pay on time or does he often wait just a few extra weeks? Requesting a report prevents you from having to chase a customer for weeks to get your earned money. Instead, you have more time for your own work.
In short: prevention is better than cure. Knowing who you are doing business with can save you a lot of trouble. Requesting a report from new customers is therefore not an unnecessary luxury.
At Debitan you can request a credit report at an additional cost.