In the business landscape, situations like Nicholas’, an entrepreneur from the middle of the country, unfortunately, are not uncommon. A meeting at a business event leads to a promising business collaboration based on mutual trust. Nicholas invests significant amounts in materials for his new business partner, expecting to be paid soon. However, after weeks of unfulfilled promises, Nicholas begins to realize that trust alone has not been sufficient.
This example illustrates the dangers of acting based on a personal connection and unfounded trust. It’s a situation that can easily become a reality. Therefore, we want to provide you with some advice:
While trust is an essential element in business relationships, it is crucial not to be overly trusting. For businesses, it is necessary that there is a balanced reciprocal relationship in the form of timely payment for services or products delivered. Investigating the financial stability of your business partners in advance is of the utmost importance. This can be done by ordering a credit report.
Salespeople often tend to focus on the size of the order, especially given the pressure of targets. It is important to train them in the importance of checking creditworthiness using our credit report. Not only for customers who seem a bit shady but for all customers. Because you can’t rely on your own intuition. Obtaining credit information through a credit report is a useful tool that does not mean delivery is refused. In price negotiations, for example, the creditworthiness and payment behavior of a customer can be taken into account, partially ‘insuring’ against potential default.
Obtaining credit information is easy and diverse nowadays. Annual reports are available through the Chamber of Commerce, and we provide tailor-made credit reports for only $12.95 each, delivered to your inbox within 5 minutes. The cost of a credit report is outweighed by the potential trouble that comes from irresponsible business transactions. As a credit information bureau, we can even provide insight into the creditworthiness of international partners, invaluable for companies with international activities. Using credit information is not just a precautionary measure but a strategic move to safeguard the financial health of your business.
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