You've sent your products to the U.S., but you didn't get paid because your buyer is claiming poor quality. You’ve dealt with a U.S. company for years and they have always paid you on time -- until now. You shipped your goods to a U.S. company, only to find out the company has ceased doing business, or changed its identity to avoid paying you. Your best customer issued a large purchase order that made your monthly sales target. But, just before payment is due your customer declares bankruptcy.
These Risks are considered by international businessmen everyday!
Of course, you may limit your risks by requiring a deposit or a letter of credit from your buyer, but you may lose that buyer afterwards. Some banks may purchase your accounts receivable through factoring, but they will charge a high fee and only accept someone with impeccable credit history.
The best way to minimize your credit risks is to screen your potential buyers by doing a research of their background. We have the capability to promptly gather information from various sources about your customers anywhere in the U.S., and provide you with comprehensive data to allow you to perform a credit-risk analysis.
We provide the following data (not all inclusive) on any U.S. company:
- Company credit history;
- Time span a company has been in existence;
- Number of businesses operating from the same location-- are they same or similar businesses?
- Outstanding/ unpaid judgments against the company;
- Pending lawsuits against the company;
- Outstanding liens on the company, or its property;
- Associates and/or affiliates of the company;
- Owner’s credit history (by consent of the individual owner)
We only provide data to our clients as a basis on which our clients may form their own opinion about the credit-worthiness of a particular buyer. We do not evaluate the credit-worthiness of a buyer for our clients, nor do we give any advice or opinion on the data that we provide, and all data are obtained from governmental agencies and/or reliable third parties.
Remember, you are an unsecured creditor. As such, your chance of recovery is miniscule to none if your buyer suddenly declares bankruptcy.
“One stitch in time saves nine” -- Don’t get caught in a cash-flow bind! Check out your prospective buyer before you accept a purchase order.
Disclaimer: Information provided on this page is only intended as a general guideline for the reader, and it is not intended as legal advice for any particular case, or exhaustive of all legal requirements.