We would never lend a large sum of money to someone without first determining whether they would be able to pay us back, yet on a regular basis we extend credit, directly or indirectly, to our many business partners.
When we offer clients terms that set the payment date after delivery of goods, when we pay a manufacturer, in advance, to deliver on a finished product or when we enter into a joint venture, believing that the other party will perform as promised, we are extending credit and putting our companies at risk.
That is why it is so important for companies, no matter the size, to obtain a credit report before entering into any business relationship.
Business is risky and being able to reduce that risk can have a huge impact on your success. By knowing who you are working with and whether they are able to meet obligations, fulfill orders and pay bills, you can ensure that your company remains successful.
The problem is that many companies have come to believe that they don’t need credit reporting.
Sometimes, they feel that their size does not justify this level of risk management or that the costs associated with credit reporting are too high.
But, once you compare the cost of an effective process against the benefits gained, it becomes apparent that enhanced screening is more advantageous than not!
Benefits of Business to Business Screening
And these are just a few of the ways that credit reporting can help your business.
For more detailed information on how credit reporting can help with your business, take a look at our download a free industry brochure!