What Is a Business Information Report? - Blog

When someone owes you money, you are exposed to Credit Risk – the risk of incurring a loss if the person will not return your money. When you are in business, you deal with many parties and have exposure to such a credit risk. Whatever the nature of your business, there will almost certainly have been times when you’ve had to ask yourself questions such as “Who exactly am I dealing with?”, “Will they pay me and when?” or “How much can I supply to them and on what terms?” You may have supplied goods; however, your customer enjoys a 30-day or 60-day credit period for payment (i.e. Account receivables). On the other hand, you may have given some advance to your suppliers, however you still must wait for your supplies.

Whether these risks relate to new or existing customers or even with suppliers, the only way to mitigate them is by having a clear, up-to-date insight into each business’s associated risks. To do that, corporates can source data through a Business Information Report (also known as BIR) through an independent agency such as CRIF.

Corporates use the BIR as it provides an in-depth profile of a company, including financial statements, business trends, history of business, ownership details, operational information, and details on related firms and any special events that occurred in the past involving company management. CRIF also provides a risk indicator and an indicative credit limit to support business managers with their decision. Below mentioned is a quick snapshot of the insights you can get from CRIF’s Business Information Report:

About the Company: The report will include registrations details, company address, line of business, the legal structure, key management and shareholding structure.

Financial Information: The report will have a detailed analysis of the financial stability, ability and status of the company to give you a clear picture about the financial trends the company follows and the real ratio between the expenses and income.

Compliance Checks and News: A thorough check on the legal aspects of the company and news about the company to be sure of what the company's status is in the market.

Risk Assessment: Understanding the risk level involved in the company and the credit limit available which gives an insight into the company's vulnerability. Here they also investigate the new and old relationships of the company with others.

A Business Information Report is not limited only to domestic companies. If you are dealing with businesses from any other country, companies such as CRIF can help facilitate getting you a reliable and insightful freshly investigated business information report through its network across the globe. From instantly generated reports to those requiring additional analysis to verify and collect data due to the lack of organization of sources. You can get all from Business Information ecosystem. The insights can help you establish your credit terms, evaluate distributors, agents, buyers and suppliers, determine profitability and analyze your potential customers.

Lenders also use business information reports as as a tool for credit risk management originating from third parties especially while financing a company involved in cross-border transactions.

Now that you understand the basics of Business Information Report leverage the power of this proven tools to secure your business and conduct due diligence. You can begin by asking for demo by clicking here