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All Providers Are Not Created
Equal
Your credit risk management program will be effective only
if it’s based on current, comprehensive and accurate
customer information that will help you evaluate creditworthiness. That’s
why you should choose a credit information provider as carefully
as you would a credit customer.
What Should I Look For In a Credit Information Provider?
For starters, you need a credit information provider you
can trust. Look at how long the company has been
in business and its reputation in the industry. Then
find out the answers to these questions:
Is the provider’s data superior?
A credit information provider’s data superiority is
judged on:
- Depth and breadth: the amount and type of company information
in the database
- Quality: data accuracy and organization
- Completeness: the number of categories of information
(e.g., history, officers, financials, scores) and degree
of completeness for each
- Freshness: data is updated regularly
How does the provider ensure the integrity of its
products?
A provider should be able to tell you exactly how they obtain,
vet, scrub and organize their information to produce credible
reports. Ask how they do this.
Considerations For Small Businesses
Small businesses may be particularly interested in the answers
to these questions before they choose a credit information
provider:
- Affordability: Can you buy a variety of information slices – only
what you need – at a reasonable price that’s
within your budget?
- Payment Options: Does the credit information provider
offer multiple payment options, including a no-contract
choice whereby you pay-as-you-go?
- Global Reach: Does the provider have a database of information
about businesses around the world?
- Uniform Reporting: Is data reported consistently from
country to country?
- Responsiveness: Is the provider capable of providing
intelligent products and services that will meet the needs
of your growing company?
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