Benchmarking International Credit Reporting: Part II, What Credit Pros Value Most in International Credit Reports
One of the questions in our recent benchmarking survey on international credit reports asked respondents a) What are you looking to obtain from reading an international credit report? b) What information do you value most? and c) What are your biggest challenges? We received a variety of great responses "from the trenches." Read on for some great insights and advice from your peers: "Generally, the biggest obstacle is the time lapse from when I need the information as to when I can actually get a report without paying extra fees to expedite...especially in high risk areas. I look for principals, their background, years in business, volume and of course where and with whom they do business. Most of our regular high volume customers are agents that we have done business with in excess of 25 years with virtually no problems."
- Susan Nash, CBF, Credit Manager, TIW Corporation "For International private companies, we look for payment info or trade data, financial info (usually to confirm prior year financial data sent directly by the company to us), legal name, address, how many years in business and ownership structure. The biggest challenge we have is that, for international private companies, very little info is available and most of it is outdated."
- Patrick Bissonnette, Manager, Credit and A/R, PMC-Sierra 'When reading a report, I am looking for: Trade payment information; Ownership; Affiliated Companies, both within and outside the country where the company is located; Financial information, even if there is no telling which set of financials are being presented; and Potential Country risks."
- Gordon Miller, General Credit Manager, ISP Technologies "Financials, ratios to determine stability ... biggest challenges are retrieving information that I am used to getting and understanding from domestic reports. There are different laws in other countries that I may not be aware of or understand in helping in collecting debt."
- Andrew Keefer, Credit Manager, Orthovita, Inc. "The 5 C's of credit because most international accounts are unwilling to provide much data. My biggest challenge is confidence. Tade and bank information would be very helpful but these are part of the challenges that I encounter with international credit reporting firms; most firms refuse to gather trade information because it is not customary to do so in most countries. And, most firms ask their clients to have faith in their in-country resources that they use. I am skeptical of all reports that I receive,but I have not found a better source of the information that I receive."
- Ken Smith, Credit Manager, Schwartz & Benjamin "Location, years in business, owner data, security, pay habits, banking relationship, product or service, suits, liens, judgments, political climate, and other questionable relationships. Biggest challenge is where to find all this information to make a decision and whether it is current and factual enough."
- Daryl Lawson, Billing Credit & Collections Manager, Squire Sanders & Dempsey "Over 90 percent of our international (non-US or Canadian) sales are either insured or sold on CIA. When we look at selling under our own exposure, we look for time in business, Net Worth and Liquidity information as well as payment trends. Would also like to see political and economic information but usually have to find that separately."
- Sandy Maxey, Director, Treasury Operations, Cobra Electronics "I look for and value the following: verification of number of years in business, company history, ownership structure. The biggest challenge is obtaining the information above, recent financial information, and payment performance with other vendors."
- Dan Clayton, Director, Credit & Collections, NetScout Systems, Inc. "Looking to gain insight into the company to determine if it is a qualified risk. Financial information is valued most, however, country and political risk information is part of the whole picture. Biggest challenge - getting financial information on these companies and getting international reports that actually tell us something worth while. Usually we can find more information in our own internet search."
- Kristine K. Skupas, Corporate Credit Manager, Schreiber Foods, Inc. "First, information in English translation. Financial information is valuable.
Biggest challenge is trying to collect bank and trade references from foreign countries, language barriers being a big issue."
- Mario Lombardo, CBC (America) Corporation "The length the company has been in business, payment history, financial information, History of Principals - The biggest challenges would be for us is getting enough information to open accounts."
- Ed Roth, General Credit Manager, Elkay Plastics Co. Inc. "When researching new customers, we try to determine the legitimacy as well as the reputation of the company. Our challenge is shipping product to foreign soil with a real buyer. Most of our international sales are L/C or DCL. The few accounts that have open terms have a long standing history with our company."
- Anonymous "Confirmation of business location to fulfill SOX requirements. Majority of transactions are secured due to high dollar volume of orders or through agents in country to whom we are selling."
- Ted Cwynar CCE CICP, Director of Corporate Credit, United States Pipe and Foundry Co. "Since we don't pull reports often, it's a matter of where we get the reports. We begin by getting their financials, but again, since it's not an everyday thing to look at foreign financials, it's difficult."
- Christine Stanbrough, Credit Manager, Guntert Steel "Financial statements, bank data, trade payments. Finding a source with more than just background information."
- James Albetta, Credit Manager, Ansell Healthcare "Credit worthiness and ability to pay. Biggest challenge seems to be getting payable paperwork to the correct place to expedite payments back to the US."
- Dan Sproat, Corporate Credit Manager, Wholesale Fuels, Inc. "Verification of the business, years in business and any payment history. The biggest challenges we face is that most reports are outdated and not very current in nature."
- Jim Rogers, A/R Manager, WD-40 Company "Years in business, type of business, financial information - most foreign companies are sold on letter of credit or cash with documents so collection is generally not an issue."
- Thom Beaupre, Corporate Credit Manager, Metal One America "Background information on the company, payment history, financial statements. Challenges are inconsistent and/or limited information depending on the country involved. Also, the time delay in obtaining information if an investigation is required."
- John Sloan, Director of Credit Services, Turner Broadcasting "Challenges are 1) legal documentation, including legal name and ownership verification 2) credit details, including age of business."
- Michael Fay, Credit Manager "Payment data, financial information about customer. Delay in obtaining information."
- Harris Semegram, Director of Credit, Prestige Brands Holdings, Inc. "Transparency, risk assessment, audited financial data, corporate structure and family tree."
- Patrick Spargur, Corp. Credit & Collections Manager, Bally Technologies "Years in business, global presence, financials, payment history with suppliers, management, industries of participation."
- Bruce Galletly, Director of Credit, Teknor Apex Company "Trade payments, financial information, scoring, and linking to a Duns#."
- Michelle Bennett, National Credit Manager, Pregis Corporation "Lack of accurate financials (they don't follow the same rules that we do)."
- Megan Kinsler, Credit Manager, Merisant "Customer viability is major concern and updated information is the greatest challenge."
- Bill Uhrich, Director of Corporate Credit, Dresser, Inc. "To obtain the broadest insight about exporters and dealers with whom my local customers are dealing and the international industrial trends."
- Anonymous "Financials and local knowledge not available via regular US sources or reports."
- Kevin Carter, Senior Credit Manager, Energizer Holdings Inc. "The biggest challenge is getting financial data. This is the most important data for me."
- Drue Cobb CCE, Credit Manager, Colfax Corp "Background on the potential customer, information from Euler, and getting the financials."
- Scott Wade, Credit Manager, Exopack LLC
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