Obtaining a Credit Rating
Eltoma can assist your business in obtaining a Credit Rating. A business credit rating is a review of a company’s transaction history and is used to measure the level of financial risk. The information used to create a rating is gathered from companies with which the business has had financial relationships with such as suppliers or lenders. Eltoma use Dun & Bradstreet (D&B) to provide credit ratings. D&B are the longest established and largest business information company in the world. Initially established in the US they now operate in over 240 countries with information on more than 100 million businesses.
A D&B Credit Rating helps lenders predict business credit worthiness based on the analysis of prior payment history, financial strength, company size and public filings. Both business owners and lenders benefit from obtaining a D&B report. A D&B report helps determine risk for the lender whilst business owners obtain better credit facilities, an invaluable asset in today’s business environment.
The Advantages of obtaining a Dun & Bradstreet Credit Rating:
Due to the fact that D&B are the most recognized credit reporting agency in the world they provide reports that go much deeper than just payment history. By obtaining a D&B Credit Report a company is able to strategically demonstrate increased credibility with suppliers and customers and reinforce a company’s viability and strengthen market presence. Basically, a D&B Credit Rating acts like a seal of approval for businesses and increases credibility. A D&B rating allows third parties to assess how well your company is doing and to assess and manage risk.
The primary factor in determining business credit worthiness is how promptly that business is meeting its payment obligations. Along with payment history the cash flow, working capital, net worth and general financial resources of the company are considered. Fiscal information is not the sole indicator however as the business profile of a company, the size, reputation number of employees and structure of the business will also be taken into account. All of these factors combine to produce a credit rating. A business credit rating illustrates the following:
- Whether the business is responsible in its payments procedures.
- If the company has sufficient assets to repay debts or provide collateral if required
- If the business environment is such that the company has all that is required to stand behind its business transactions
A good credit rating is invaluable as it enables a company to obtain the necessary funds to expand or purchase new equipment etc. It can also assure liquidity guaranteeing the business has the necessary cash on hand to cover day to day operational expenditure. Eltoma can assist your business in obtaining and maintaining a D&B Credit Rating in order to improve performance.
The process of obtaining a Dun and Bradstreet Credit Rating:
D&B offer six different reports on each listed company combining these into a final score called ‘The Score Report’ which can then be used for analysis. The Score Report focuses on scores and rankings and produces a D-U-N-S number (Data Universal Numbering System) that allows the user to compare the company with their competitors. The D-U-N-S Number is the first stage in establishing a business credit record and can be done in a relatively quick timescale, in approximately 30-45 days. After this Eltoma will manage your credit rating ensuring that the business has active trade accounts and all up to date information is active.
The D&B Network offers an unrivalled alliance of D&B and information providers throughout the world. Through this network customers can gain access to worldwide business information, powered by D&B’s unique DUNSRight Quality Process.
Through Dun & Bradstreet Eltoma can manage numerous services on behalf of customers including; business information reports, credit ratings, risk management systems, warning and monitoring systems, business guides, marketing databases and many more. Please do not hesitate to contact us to see how we can help.