Why Corporate Credit Reports Are Important When Extending Credit to Corporations with Multiple Locations

When corporations have multiple locations, they can have complex hierarchies. Each location may operate as an individual unit or may be part of a regional unit. They may be formed as separate business entities or part of layered groups. When you are working with a corporation with multiple locations, it can be difficult to know who is ultimately responsible for ensuring you get paid and whether the payor is financially stable.

Corporate credit reports can help you determine a customer’s business lineage. By understanding how companies are connected, corporate credit reporting can help you more accurately assess potential credit risks.

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You may encounter a situation where the company location you are doing business with appears healthy. However, they might be connected with other locations or a parent company that is under financial stress. A corporate credit report can uncover the company’s locations and any corporates ties that exist.

Corporate credit reports can show different information depending on which report you choose. You may find a business family tree valuable. A family tree lets you know if the company is its own entity or part of a larger corporation. If it is a publicly traded company, you may also want to examine its balance sheet and income statement.

Corporate credit reporting can provide you with additional information to help you evaluate a company’s financial situation, such as:

  • An overall credit score
  • Recommended credit limits
  • Account status, such as days beyond terms on payments
  • Creditor balances
  • Derogatory filings, such as bankruptcy, liens, judgments, or UCC filings

A corporate credit report will use the information it gathers to provide a predictive risk analysis. This can include a projection of financial stability and viability within the next 12 months and the likelihood that your business will get paid on time.

You can compare the different credit reports and view samples at myaccredit.com. Select the corporate credit report you want, pay for it online, and you can download it instantly. You can download corporate credit reports as you want from Dun & Bradstreet, Experian, and Equifax. There is no waiting, and you are not required to sign up for a subscription service.

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