What Is a Business Information Report: Complete Solution for Credit Risk Management and Compliance
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 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. To better understand what a business information report is and how it helps organisations, let's dive into the specifics.
Why Corporates Rely on a Business Information Report?
Corporates use the CRIF Business Information Report as it delivers an in-depth company profile, including financial statements, business trends, company history, ownership structure, operational data, and relevant event details. This comprehensive information offers a risk indicator and an indicative credit limit, assisting business managers in making informed, data-backed decisions.
The CRIF business information report also provides a risk indicator and an indicative credit limit to support business managers with their decision. A comprehensive business information report includes more than just operational data and trade payment history. They are composed of various credit ratings, scores, and statistics that range from performance-based to predictive and can be used to demonstrate a company's dependability and financial stability.
Your business information report will include:
What Does CRIF's Business Information Report Include?
Company Profile and Basic Details
The report will include business type, registration details, company address, line of business, legal structure, key management, and shareholding structure.
Financial Information:
A detailed analysis of the company's financial background, including stability metrics, financial trends, and ratios between expenses and income. This section helps assess the creditworthiness and financial sustainability of the business partner.
Compliance Checks and News:
In-depth compliance verification and market news keep you informed about the company's standing and any legal matters. This ensures that you are aware of potential compliance risks and can act accordingly.
Risk Assessment and Creditworthiness
Understanding the risk level involved in the company and the credit limit available gives an insight into the company's vulnerability. Here they also investigate the new and old relationships of the company with others.
Financial and non-financial information of the organisation:
Names of the affiliates, subsidiaries, and parent organisation, as well as the details of their relationships. Any event or activity involving the business that has recently received media attention. Business registry records, balance sheets, assets and liabilities, and trade sources.
Data on the company's operations:
Information such as the number of employees, sales and purchase terms, and operating locations.
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. You can get everything from the Business Information ecosystem, from instantly generated reports to those requiring additional analysis to verify and collect data due to the lack of organisation of sources.
The insights gained from a Business Information Report allow companies to define credit terms, evaluate distributors, assess agents, gauge customer profitability, and conduct thorough risk assessments on potential clients. Lenders also use business information reports 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 tool to secure your business and conduct due diligence. You can begin by asking for a demo by clicking here.