In the past, entrepreneurs knew almost everyone in their industry. You knew what to expect from that particular business partner, service provider, or supplier. Nowadays, that is often no longer the case. Millions of people and hundreds of thousands of companies do business with one another. The globalization and internationalization of the business world is a fact. An important question, therefore, is whether that business partner can actually be trusted.
Chambers of Commerce, specialized agencies, and banks can provide you with this information. You can often find information yourself on the internet as well. Trade agencies can provide you with credit information if you wish to supply a company on credit. Well-known agencies include Dun & Bradstreet and Intrum Justitita.
Credit monitoring naturally takes precedence over credit granting. Pay particular attention to the owners and directors of the company you intend to supply on credit. However, be aware of whether you can obtain this information yourself. Engaging such an agency often entails high costs. If you frequently need such an agency, it may be beneficial to establish a long-term relationship with one. Various subscription options are available. This can also often be combined with other forms of service, such as debt collection.
Banks can also provide you with commercial and credit information. Inquire about this with your own bank. However, the bank may not be entirely independent regarding credit information, as it is, after all, a credit provider itself.
Banks and commercial information agencies obtain a large part of their information from public sources, such as magazines, newspapers, annual reports, trade journals, and trade registers. In doing so, they create files and records from which they can draw for themselves and for you. Information is also gathered from the behavior of companies in debt collection cases.
The commercial information obtained is always advisory. You make the final decision.
