Weighing Up Risk Vs Reward - Business Credit Reports

Risk Vs Reward?

When operating a business whether as a business owner, director or head of department there are several things when extending credit or entering into contract with suppliers that we need to think long and hard about.

With the recent news of large blue chip organisations such as Jessops and HMV and last years news of the likes of Comet and JJB failing there has been more emphasis on credit checking and monitoring your customers. Here are a few reasons as to why this is a prudent course of action within any accounts department whether it be for an SME or blue chip company:-

Why should we credit check our existing and potential customers?

Your existing and potential customers along with suppliers need to have business credit reports carried out on them to ensure that you do all you can to make sure you will be paid and also to maintain a secure supply chain.

When do we do a credit check?

A business credit report should be carried out at the point of when the application for credit is generated. This is also wise when setting up new suppliers.

Who offers business credit reports?

There are a whole host of credit reference agencies which can provide business information. Information can be available in different degrees of detail, and most agencies offer PAYG or subscription offers to suit.

What information is available in business credit reports?

The main points of a business credit report on limited companies is the fact you are able to attain the latest financial accounts for the company along with director details, group structure, derogatory information and credit limits to assist you with your decision.

Is there any way to ensure that if information changes I receive updates?

Along with business credit reports most credit reference agencies provide systems such as our monitoring system which sends email updates of any relevant changes on any company which is on the monitoring list.

How much do these credit reference agencies charge?

Some credit reference agencies charge dependant on usage, others on what degree of information the customers require, however the best way to obtain the best quotation is to shop around, trial systems and see which system suits your requirements best. Many providers offer unlimited packages where required covering a range of different services such as business credit reports, consumer credit reports, international credit reports, Companies House documents, debt recovery services, marketing data amongst other services.

If you would like to know anymore about business credit reports then please do not hesitate in emailing me on martin@creditserve.co.uk or Twitter @creditserve or LinkedIn Martin Brown