Will I get paid? As a business owner or credit professional that provides goods and services to other businesses, this is a ponderous consideration. After all, in order to pay your bills and for the survival of your business, a positive cash flow is critical. But how do you find out if your customer has the financial resources to pay you?
You may have had the customer complete a credit application. This asks basic questions regarding the customer’s basic business structure and asks the customer to nominate 3 trade references. You may or may not get a response when you contact those referees. Most companies don’t have the manpower resources to provide trade references and generally decline to do so.
You may conduct a bureau check. This provides confirmation of structure, identifies owners/principals, registered securities, previous legal actions and defaults. Valuable information but historical information. It in no way gives you a sense of what is happening NOW. The current satisfaction or dissatisfaction amongst suppliers, a sense of the customer’s commercial responsibility or morality.
What about a full credit report. These are generally a combination of the bureau check and a trade reference survey with some operational data thrown in. Some I have read usually ‘cut and paste’ information from the company’s own website. In addition, they are expensive and usually obsolete by the time you receive them. These reports are slow usually take between 7 and 12 days to produce unless you are willing to pay a substantial premium (sometimes double the usual price) to obtain Express or Flash delivery. Quality also varies considerably as generally the credit reporters employed by the larger agencies lack experience and basically tick boxes on questionnaires.
Conferisk has launched a new and exciting alternative – a real-time interactive credit risk intelligence network. Conferisk facilitates open communication with other credit professionals giving you access to others current and past experience with existing of potential debtors. This model offers benefits such as much faster access to information, significantly lower cost than traditional methods, plus the ability to establish knowledge networks within your and affiliated industries. Plus, it is a documented fact that companies that report their payment experiences with other businesses tend to get paid faster than those that do not.
You can also identify debtors as potential problems for other industry members who may unknowingly become the victims of ‘supplier hopping’ (i.e. where a customer defaults with one supplier only to switch to another unsuspecting supplier). Or positively rate good customers enabling them to quote their positive Conferisk rating when talking to new suppliers.
A First for Conferisk!
What makes Conferisk unique is that if an industry group identifies that a creditor is in the early stages of financial stress, they can collectively approach that company and formulate a plan to assist them over a short term liquidity crisis (such as a business landing a large contract that is beyond its immediate resources to fulfill but represents a major opportunity to the company and its suppliers in the longer term).
Take advantage of our 30 day free trial offer, visit www.conferisk.com
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