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Mercados Internacionales 1 Tips and Tricks

What will you learn? How to Make Better Credit Decisions

Who is it for? Businesses investigating potential business partners Fuente: http://www.dnb.com/risk-management/evaluating-a-business/16798099-1.html

The 7 keys to Evaluating A Business 3/09/2012

80% of bad debt comes from long-time customers

You want to do business with a certain company, but you need to know that company is for real and capable of being a sound business partner. What are the warning signs a business may not be all that it claims? Here are the signals and how you can manage this risk: 1. An over-eager owner – If you find an owner willing to provide everything you request without question — investigate further. 2. Questionable start date – If the owner states they have been around 10 years and you have never heard of them, dig deeper.


3. A pretentious business name – "Global Financial Equipment Sales" sounds good until you find out it is three guys working out of a storefront. Check it out. 4. Unexpectedly robust financial statements – The owner supplies information showing a current ratio or net worth well above the industry median and yet the company is a start-up. You'll need to do a thorough business credit check. 5. A typical trade references – If many of the companies used as references are outside your industry, watch out— they may not be valid or relevant. 6. Trade references all from one industry – Telecom, business equipment, financial services, etc. You'll need to investigate, pulling a quality business credit report. 7. Business principals involved in other failed or fraudulent enterprises – If you check the "Character" of the principals and you find business failures — can your risk management profile handle this?

‘Global Financial Equipment Sales’ sounds good until you find out it is three guys working out of a storefront. Business Takeways •

Be aware of the many signs a business may not have sound credit

The Fraud Risk Score is a powerful, predictive score that is designed to help credit issuers easily assess the potential fraud risk of a new business credit applicant.

To help investigate a businesses, try this solution:

The 7 keys to Evaluating A Business  

Pasos para evaluar un negocio

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