Establishing relationships with reputable, reliable suppliers can help ensure that your business runs as efficiently as possible. With so many variables that can threaten your bottom line, performing due diligence on suppliers may prevent headaches down the road.
The challenge comes in identifying the right vendor in a crowded marketplace. Checking a prospective supplier’s business credit report can be a good first step. While a business credit report cannot guarantee the supplier will meet your expectations, it can be an important resource in making an informed decision.
What You Can Learn from a Business Credit Report
Partnering with any vendor comes with a level of risk; if they fail to deliver, your own business can be affected. Reviewing a supplier’s business credit report may help you gauge how they’ll perform in the future. For example, a company’s D&B Business Information Report™ can include its past payment history, background on key employees and details about bankruptcies and liens. This one-time business credit report also provides the vendor’s D&B PAYDEX® Score, which is based on other companies’ payment experiences with that supplier.
How to Check a Company’s Credit
In addition to the D&B Business Information Report™, Dun & Bradstreet offers multiple products to help check a vendor’s business credit. CreditAdvisor™ provides continuous monitoring of a business’s credit report, including its PAYDEX® Score. Regularly reviewing the financial health of current suppliers may allow you to make alternative arrangements before their problems disrupt your supply chain.
D&B's International Credit Reports™ provide financial information on foreign firms. The Comprehensive Report contains data on past performance, as well as predictive ratings to help determine future risk. This report also verifies the business’s existence, size and assets – all invaluable information when working with companies beyond your borders.
Once you’ve chosen a short list of potential vendors, Credit Evaluator Plus™ can help you determine the proper amount of credit to extend to each prospective supplier. The end goal of this basic report is the same as the more comprehensive products: to protect your company from risks associated with unreliable or unstable partners.
Establishing a network of reputable suppliers is one of the most important things a business owner can do. Failure to research a vendor’s past financial performance exposes your firm to unnecessary risks. The resources available from D&B Credibility can help you connect with suppliers serious about their clients’ businesses.