A credit report is a report with which you can check the creditworthiness of your business partner (company). A credit report is put together from various sources and presents a credit score (creditworthiness of the company). This is the amount in euros ($) for which the company concerned is creditworthy. In addition, a credit report provides insight into your business partner’s payment record and large parts of their financial affairs / figures.
A credit score is assigned by a number of specialized businesses (credit reference agencies), often at the request of banks and companies.
Without such a credit score, it is very difficult to obtain credit from companies or banks. By means of a credit report, companies and banks aim to assess the bad debt risk and prevent non-payment by debtors. Every credit reference agency has its own sources and insights into a company’s finances. The greater the number of reliable sources they can consult, the better they can assess a company on its creditworthiness towards its suppliers and customers. Such sources include: the US Chamber of Commerce, collection agencies, information on directors, companies sharing payment experiences, the land register, etc. Because of the diversity and number of sources, some credit reports will be better than others.
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