A credit report is something that you as a private person are “exposed” to when you take out a loan, buy on installments, obtain credit cards or mobile subscriptions, etc. But it is not only the private person’s perspective that is interesting – it can also be important to know how, as a company, you can benefit from credit reporting as a service, so as to reduce the risk of losses. In this post, we will look at the purpose and weight of credit information when you as an entrepreneur need information about customers.
Regardless of the type of business you run, it is of course always that you look forward to creating new customer contacts. When you offer services and products against invoice payment, you always take a risk. For smaller sums, you may also be willing to do so, but when it comes to larger and more expensive projects, there is good reason to benefit from a credit report that is well adapted to the type of customers you have.
Taking a credit report is nothing that needs to slow down for that matter, if you only have a good working relationship with your provider of this service. Then you can quickly get the summary you need about potential customers, to make the right decisions and do safe and secure business.
The benefits of being able to use credit information
A regular credit report can provide an incredible amount of details. When it comes to a lesser risk and you most want to get a good idea, you can use rating and scoring systems where you quickly see if there is reason to question how creditworthy a potential customer is.
For those occasions when you feel that a more detailed report is required before you can make a good decision, there is really a lot of other good information to use, where you can get more details about things like:
- payment Behavior
- Possible payment remarks
- debt Aldo
- Key figures
- Group structure
Of course, it is possible to use the credit information to directly determine if a customer has an approved finance or if you have to say no directly. But the information not only needs to work as a way to approve or deny anyone, but can also be used to create the best possible cooperation with their customer.
For example, it is possible to find out, by means of extensive credit information, what kind of financial events have been of great importance to other companies that you are considering to start working with. This is information that not only talks about if it is a serious company but also gives a clue as to what to expect and how to develop the collaboration in the long term.
Business with other companies
When it comes to “b2b”, business between companies, there are a few different types of credit information to use. Maybe it is enough with a minor check of remarks, and then it does not cost many kronor per report. If you need more meat on your legs you can choose a larger company report where you will know more.
With a good agreement with a credit information company, this should be flexible so that you only pay for the information you actually need. It is also important that this is done in a discreet manner, which does not jeopardize the relationship with the new customer. If you realize that it will not work to work with a certain company, it is good that you can deflect at an early stage, so that you can move out smoothly.
When to give credit to private individuals
When you give credit to private individuals, there is a great need to know that you have a good chance of getting paid on time and without any problems. Nowadays, we consumers are used to being investigated when we shop for things on credit, so this is hardly something that will arouse upset feelings. Despite this, it is important to be clear that a credit report will be executed when the customer wants to make a purchase.
When it comes to private individuals, it is first and foremost important to know if there are any payment remarks, which may be a sign that the person is having difficulty paying his bills. This is information that you can get quickly and that does not cost much.
Even a slightly larger standard information does not entail any major expense, and it may be wise to perform if it is a larger sale that may be split up with payments over a longer period (installment purchases). A good credit reporting company can be a really nice support and help when you may not have the person’s ID number – so you don’t have to waste time sending information back and forth.
Credit information service costs
When looking at the costs of credit reporting services, one must take into account what these provide and how they reduce the risks that you take in trading with companies as well as with private individuals. As mentioned before, flexibility is also a factor when choosing to buy credit information. Price is of course an important factor, but you should also consider what you get for the money when deciding what is worth investing in.
It is important that you get the information you really need to decide whether to give credit to a particular customer or not. It is this that can lead to the avoidance of credit losses and thus actually save more than the service costs. The most important thing in the end is also that you should be able to earn the cost and save money.
In addition, if it is so that you can get the information from credit information very quickly, it is also something that can easily and easily be included in one’s normal workflow and affect the business operations in a positive way. In this way, it can become a natural part of the flow that protects the company’s claims.
Read more on Wikipedia or at a recommended company that does credit information.