Information about international applicants
and customers can be difficult
Information about international applicants and customers can be difficult
to get - at any price. U.S. credit managers will quickly learn that it
is far more difficult to gather the same kind of information - or the
same quality of information that is available about a customer or applicant
in the United States.
Creditors may find that obtaining financial information
from foreign customers is even more challenging. One of the best sources
of information about doing business internationally is the FCIB.
FCIB provides member companies with country risk reports, as well as
a worldwide credit reporting service on individual companies. FCIB country
reports identify, describe and quantify as many of the credit risks associated
with doing business in a particular foreign country as possible. Country
risk reports are for sale to members and non-members.
U.S. credit professionals may be surprised to find that foreign suppliers
may be unwilling to share information in response to routine credit inquiries.
In some countries, it is not common business practice to request or to
respond to reference checks.
Another limitation associated with foreign
trade references is the fact that the creditor has no way of knowing
whether the party giving the trade reference is an impartial third party.
For this reason, a creditor should specifically ask the debtor to provide
a list of their U.S. trade references.