Gain cash flow confidence with credit reports

When you’re expanding your business and working with new companies, you want to be confident that anyone you Credit Reportsdeal with has a good payment history. Credit report can help provide this.

Credit reports give you a realistic picture of a company’s finances and lets you make informed decisions based on facts. While credit reports are an out-of-pocket expense, a relatively small amount of money upfront might save you hundreds or thousands of dollars by avoiding late or non-payments.

Xero has teamed up with Equifax, a leading credit reporting company, to share six key points on what you’ll learn through credit reports:

  • A credit score is an indicator of future risk

It will help you understand a company’s payment history, defaults, and if they’ve got any legal actions against them.

  • You can identify any financial distress

You’ll see any trends in late payments, if they’re selling off assets or if they’ve had any staff cuts.

  • You’ll be able to ensure that a company is real.
  • If a credit report has any warning signals about a company

You can consider how you set out your payment terms. For instance you can ask them to pay 50 percent upfront or cash-on-delivery.

  • You’ll know who you can loan money to, how much and when to stop.
  • You’ll be able to have the right payment conversations early on in your business relationship

This can help you reduce the chance of misunderstandings in the future.

Find out more about the benefits of credit reporting and contact us if you want any help sourcing a report and making any decisions based on a report.

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