What is a business credit report?
A business credit report is a document from a credit reference agency that rates how risky a company is as a customer and suggests a credit limit. A supplier orders one before agreeing payment terms with a new customer, or to check a customer it already trades with.
The contents vary by agency and by country. Creditsafe's documentation describes an international rating from A to E, built around the chance of failure in the next 12 months. Its report also lists company identity and directors, financial statements, court judgments and group structure. Not every field shows for every company.
A report is not the same as a customer credit rating. The rating is the score or grade, and it is one part of the report. The credit evaluation process is the wider set of steps a supplier follows, and the report is one input to it.
A report also differs from credit bureau reporting, which is a supplier sending its own customers' payment data to a bureau. Trade credit insurance pays out when a customer does not pay, while a report only informs the decision to extend credit. See credit control software that integrates with Creditsafe.
App of the Year