Business credit rating

Business credit assessments often happen when a company does business with another company, often referred to as B2B.

The credit assessment is carried out to protect against bad debtors, but equally importantly to get a financial impression of the customer and, based on this, determine an appropriate credit length and credit size.

Every day, thousands of credit assessments are performed on businesses, sometimes manually - but often completely automatically; either when the customer does business with another company or continuously at a fixed interval to obtain credit assessments.

Who should credit score other companies?

Any business looking to avoid or at least minimize bad debt losses should consider whether credit scoring their business customers could be a solution for them.

Credit scoring of customers helps reduce losses - and even avoid them altogether.

However, as a business, you should especially consider the credit rating of your customers if you provide credit - for example, in the form of credit sales.

If you provide credit to your customers, you have a much greater risk of losing on debtors than if you only provide cash sales, for example. For some companies and industries, providing credit to their customers is a competitive parameter - and the longer the credit and the bigger the credit, the more attractive you can appear. This could be in the construction industry or the food industry, for example.

What does a good business credit rating include?

We often get the question "What do you look for when credit rating a company?" Fortunately, there are a number of good public sources like the CVR register and services like Proff.dk that can provide insight into a company.

With these services, you're often well on your way - but we still think there's a long way to go to get there.

Therefore, we believe that a good credit rating tool for credit rating companies should contain a complete overview of the company's finances, accounts, key figures, management and executive management - and not least a credit recommendation and a credit rating of the company.

The latter two are not publicly available, but are often crucial to the complete picture of the company's financial situation.

Automatic alert with automatic credit scoring

Credit assessments of companies can be done in many ways - either manually or automatically.

Some companies choose to perform a credit assessment when the customer is created in the system - while others perform a credit assessment continuously and automatically.

With automatic credit scoring of your customers, you get a picture of your customers on an ongoing basis and can be ahead of the game for the next time your customer contacts you.

Run credit checks on businesses with Qatchr

If you are a business and need to credit check your customers, we here at Qatchr have developed a user-friendly online platform where you can look up both private individuals and businesses.

The platform gives you a wealth of features to gain insights into your customers' financial situation, either manually or fully automatically.

Get a free, no-obligation demo of Qatchr today and see what Qatchr can do for you.