Why Companies Buy Credit Reports
In business, the goal is to make profit. A successful strategy to generate consistent profits includes minimizing risk. Unforeseen challenges can threaten profits and even drive otherwise successful companies into bankruptcy. A sound business strategy will include effective risk management.
A major source of financial risk comes from the extension of credit to clients and accounts. Business credit is an unavoidable fact of life; no business can survive without access to credit and most businesses must extend credit to clients. But if an account pays late, or suddenly goes out of business, the loss of income can be catastrophic. For this reason most businesses, whether they are global or local, buy credit reports to evaluate the risk associated with extending credit.
When a company decides to buy credit reports, they are taking a significant step to ensure that they can make the best possible decision when extending credit to new or existing accounts. But why buy a credit report? What’s the benefit?
Global Business Demands Information
If the company to which you extend credit is located across the street, it is an easy job to visit the company and meet with the owner. You’d be able to get information about the company just by asking around or reading the newspaper. If there was a problem with an account, you could easily resolve the issue with a friendly meeting.
But in today’s global economy, your new account may be located in another country or on another continent. Companies in America, Europe, and Asia are increasingly engaged in international commerce and are tied together by long-term financial agreements. This global network raises the stakes and makes mistakes much more costly. It also makes it more difficult for credit risk managers to make sound business decisions about extending business credit.
The solution is to buy credit reports from a reputable and ethical agency. A reliable business credit report will tell you:
- If the new account has a good credit history
- The names of key executives and shareholders
- Financial information including balance sheets
- If there have been any bankruptcies or legal action
- The outlook for future solvency
- Amount of debt carried by the company
- The level of risk associated with extending credit
Buy a Credit Report from Credit Risk Manager
Credit Risk Manager provides access to a global database consisting of 130 million business credit reports. These reports contain information that has been collected from a wide variety of reputable sources and has been filtered and cross-checked. Online credit reports by Credit Risk Manager are in an easy-to-read format and are updated frequently. Credit Risk Manager is an initiative of Graydon International. Graydon's history in credit management goes back more than 120 years. It is easy, fast en affordable to get a high-quality online credit report from Credit Risk Manager.
To buy a credit report from Credit Risk Manager, you only need to enter the name of the company, the country and the city it is based in.