Business decisions are often based on available information. You want to know what kind of company you will be doing business with, its financial situation and whether the person you are sitting at the table with is signatory authorised. For this, you consult annual plans, company pages and the Chamber of Commerce. Credit information is much more widely available thanks to digitalisation. Yet in practice, this information regularly fails to protect you from non-payment.
What does a credit information report offer?
A credit information report gives an insight into how a company is doing financially and to what extent the company is paying its bills. It also gives the company a credit score: does his or her financial situation meet the desired level. Important information, especially when it comes to orders involving large sums of money. It allows you to carefully weigh up whether or not to do business with the company. And by being well-informed, you reduce the chances of defaults. That is good for your business and good for your sleep.
A credit report can also be useful if legal proceedings need to be initiated. It provides insight into whether the company or individual concerned has any recourse once the judge has handed down the judgment. In other words, whether there is anything left to recover once the judge has ruled.
This comprehensive credit check includes annual figures, payment behaviour and information on banking relationships, in addition to company information, which results in a figure/score expressing the organisation's creditworthiness. It also indicates the amount up to which it is justified to deliver to a customer on invoice.
The difference between a credit limit from a credit insurer and a credit information report
The difference between a credit limit from a credit insurer and a credit information report
A credit reference agency will advise you on the credit limit. A credit insurer wants to actually cover the amount of the credit limit. Credit insurers therefore take more actions to get information about companies. In fact, the need for companies to provide this information is great. This is also how they get more (free) supplier credit. Based on recent information, credit insurers can often issue higher limits.
Although both a credit limit and a credit information report are carefully compiled, the amount of the limits may differ. This is because both have different guidelines for issuing a limit.
Three free credit assessments
Are you also curious about what a credit information report says about your customers? Especially for our newsletter readers, we are now offering the opportunity to have three free checks carried out with no obligation.
Are you interested? Then contact us at info@xolv.nl or 073 - 820 02 95. Our specialists will be happy to assist you.
