What is a method that a business could use to check the credit rating of new customers?
submitted by Marc A. Roni

Jillybeanz

A business can use credit bureaus like Experian or Equifax to obtain a comprehensive credit report on the new customer. The reports show detailed credit history and risk assessment.

dimplify

They can look up the customer's credit score through online credit reporting agencies to see how reliable they are in paying debts.

MarktheNarc

You can always conduct a bank reference check or request trade references from the customer.

Or you can find out the hard way by just doing business with them for a while.

_09twofourtwo_

The company can ask the customer for financial statements or bank statements to see if they can pay on time.

A quick look at a balance sheet would show you the world.

youknowtheyknowit

You could roll your own, so to speak. Keep good tabs on payment from customers and make your own credit score. The downside here is that you'd need to take the initial risk of working with them for a while before you got the answer to your question. The upside, of course, is the money you'd save not paying for credit score reports.