How good are you with split-second decisions? Actually, let’s clarify: how good are you with split-second decisions when the stakes are high? When you’re making decisions about your business, it’s about more than deciding where to get takeout from on a Friday night. The calls you make could make or break the business. Let's say you choose to work with a risky customer who then goes bankrupt and increases your bad debt, for example. Or maybe it’s the other side of things: you take so long to make a decision that your company stagnates and your competitors get out ahead of you.
The solution? A risk score API that you can integrate into your existing tools. Giving your entire company access to trusted data means that everyone can access the information they need to make smart decisions quickly. But not all APIs are created equal: how do you find the best risk score API for you? Let’s get into it.
Table of Contents
- The best risk score API connects to a single source of data
- The right risk score API should be easy to set up
- Your risk score API should provide reliable and accurate information
- The best risk score API should unite teams across your business
- Your risk score API should integrate with existing systems
1. The best risk score API connects to a single source of data
Your API is only going to be as strong as the data it provides you with. Think of it like a friend: you might know someone who always has an answer for everything, but they tend to stretch the truth or contradict themselves. You’d probably go to a different friend for advice when it really counts, right?
When you’re looking for the right risk score API, look for one that gives you consistency. It should connect to a singular database, so that no matter where you’re using it, you can access the same information. That way, different teams will all be able to make decisions based on the same information. It reduces friction, opens up new lines of communication and overall allows for smarter, less risky business decisions.
Look for an API that goes beyond the surface. Instead of just credit risk scores and limits, you should also be able to access things like payment data, corporate linkages and business information. Not only will that help you gain a deeper understanding of your customers and suppliers, it also protects your business from fraud. You’ll be able to quickly verify a contact’s identity and make sure your time – and money – only go to legitimate businesses.
2. The right risk score API should be easy to set up
Unless you work in IT or have experience with different types of tech, words like “Application Programming Interface” might make you take a step back. It can seem daunting to connect your entire company to a massive database of credit risk score information. In fact, in our research study AI’s Role in Business Risk we found that only 14% of respondents claimed to have “expert level” digital skills.
So when it comes time to choose and install a risk score API, it’s no wonder that a lot of companies hesitate. Often, they’re worried about lengthy, drawn-out processes that leave their team with more questions than answers – not exactly the ticket to speedy decisions APIs promise.
But not all APIs are created equal, remember? In fact, some are able to be installed in a matter of minutes. Teams can start accessing the information the same day, without disruptions to their existing workflows. When you’re on the lookout for the best risk score API, make sure it can be set up in a snap.
3. Your risk score API should provide reliable and accurate information
Remember what we said about relying on your API like a friend? Well, a good friend is always honest with you – so a good API should always give you accurate information. Things can change quickly. Think about what could happen if you’re working with outdated credit risk information. You could sign a deal with a customer who looks great, but when it comes time for them to pay their bills you’re left waiting. It leads to more bad debt, stunted cash flow and frustration from all sides of the business.
When you’re shopping around for the best risk score API, look very closely at the data. It’s great if it comes from a wide variety of sources, but how often is it updated? Does it have an international reach? Are its sources reliable? Creditsafe’s database, for example, contains data on over 430 million businesses worldwide comes from over 9,000 sources. Beyond that, it’s updated up to 5 million times a day. When you have that kind of up-to-the-minute information feeding into your API, you never need to worry about surprise bankruptcies or missed opportunities.
4. The best risk score API should unite teams across your business
Even though everyone in your business shares a common goal overall, it doesn’t mean they always get along. Take sales and finance teams, for example. Historically, they have the potential to be at odds with each other. The sales team feels stifled when their deals are denied by finance, whereas the finance team feels unheard when sales bring them deals that don’t align with the company credit policy.
A risk score API could be the key to unifying not just sales and finance, but the entire company. I know that sounds like big talk, but hear me out: when everyone has access to the same data, it’s much easier for them to explain their thought processes. Decisions can be made in a more collaborative, communal way, which helps foster a more cooperative culture overall.
Think about it: let’s say you’re a finance manager who’s had to knock down a lot of potential new deals lately. You probably aren’t the sales team’s favorite person right now, but you’re frustrated too: you’re putting in the work to protect the company from risky customers, but it feels like a thankless job. If the sales team could easily access the same data the finance team has, vetting leads could be more of a shared responsibility. Suddenly, the potential deals coming across your desk are much more in line with the company’s credit policy – you can say yes way more often than you were before. Your job just got easier and the sales team are happier and more productive. Plus, the business is enjoying healthy cash flow and hitting targets – win-win-win.
5. Your risk score API should integrate with existing systems
The example I just outlined feels pretty dreamy, right? Well, there’s a bit of a catch: I said if the sales team could easily access the same data as finance. The key word there? Easily. Mistakes happen all the time – we’re only human. The best way to avoid them is to include fewer opportunities for those little human-error mistakes to slip through the cracks.
When teams are working with many different tools, they can form a well-rounded idea of a potential customer and come up with the right plan to sign them, retain them and get paid. But when all of those tools are scattered across different systems, things can get lost in the shuffle. It’s about little things: entering company information between one system and another could lead to discrepancies you might not catch until you’re further down the road, for example.
That’s why your risk score API should integrate directly into the tools and platforms you already use. Bringing credit risk data into Salesforce or another CRM, for example, means that teams can verify data then and there, without needing to navigate away to a different tool or platform.
No more surprises when it comes to customer creditworthiness.
Enjoy a free trial of Creditsafe's business credit reports.
About the Author
Bill James, Director, Enterprise Sales, Creditsafe
With over 15 years of experience in finance, risk management and data analytics, Bill James brings a high level of expertise and industry trust to his role. Before joining Creditsafe in 2021, he served as Area Vice President at Dun & Bradstreet. Bill is widely recognized for his authoritative insights into enterprise risk strategies and is a frequent, trusted speaker at major industry events. His development of tools like the DSO calculator further demonstrates his applied experience and leadership in driving financial performance improvements.
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