By Anonymous || December 5, 2019 ||
Running a company in today’s business climate brings with it many challenges, but thankfully there are some easy ways to make running a business easier and more profitable.
Nothing provides a business owner with more accurate information than the credit reports of their customers, competitors and suppliers.
To protect your business, running business credit reports is one of the best ways to assist you in obtaining information on a potential bad debt or changes to a customer's businesses. This information allows you to make smarter business decisions.
1. Prevention is better than a cure
Checking a business credit report will provide you with the confidence you need when choosing whether to supply or be supplied by another company.
2. Learn if there is history of bankruptcy
Finding out whether or not a company has past legal notices and whether its directors are linked to bankruptcies, will help ensure that your business does not begin a partnership that could have a negative impact.
A simple credit check will help you to identify if a customer can pay upfront, which will save you time and resources chasing late payments.
3. Understand a company’s ability to pay
A business credit report provides you with in-depth knowledge on how a company manages its financial responsibilities. A simple credit check will help you to identify if a customer can pay upfront, which will save you time and resources chasing late payments.
4. Know a company’s legal history
If a company suffers from financial or legal issues, its credit report will tell you. This will enable you to protect your business from unreliable suppliers or potential late payers / debtors.
5. Monitor your suppliers
If you rely on certain suppliers for your business, then monitoring them and following their credit activity such as credit score and limit can help when making those crucial business decisions and give you the peace of mind when entering into a business relationship.
6. Monitor your customers
Monitoring your customers’ credit reports will also help you decide whether the company in question is of greater risk of default than in previous reports. With this level of information, you can then look at how you can change the payment terms or options for that customer.
7. Minimize use of collection agencies
Checking credit scores for businesses helps to minimize the chances of having to pass cases to debt collection agencies.
8. Monitor your own company
Staying up to date with and monitoring your own company’s credit report is just as important as looking at external businesses. You will be able to ensure that you reduce risk, make better business decisions and take the necessary steps, if necessary to improve your credit score.
Would you do business with you?
9. Get an outsider’s perspective on your own company
Your own company’s credit report also gives you the chance to view your business through the eyes of your customer, supplier or competitor. Would you do business with you?
10. Monitor your competitors
Checking business credit reports of your competitors will give you valuable knowledge on their business development, their financial position and if there are any legal filings against them. This allows you to keep ahead of the game and maintain a positive position for your company in the marketplace. They are probably using business credit reports to keep an eye on you!