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Clients Credit History

What is the best way to research the credit history or stability of a potential new client. Thanks.

Karen Cupp Controller p11creative

Call the credit references listed on their credit application, Talk to their bank, Run a D&B, Some collection agencies can run credit checks for a small fee. Hope this helps.

Terry L. Jones, Jr. Controller Harvey and Daughters, Inc.

Get a copy of their D&B report.

Ed Miller

We found a company with a great price that in addition to business credit profiles we use them for employee background checks and personality profiles. ACCUFAX/Richard Carroll 800-256-8898 X18

Kim McNeill Lighthouse, Inc.

I use D&B reports whenever necessary. Cost is about $100 to run a background search. www.dnb.com

Roxanne Cowan

If they are only a potential client and you can not get a credit application filled, then try getting their D & B number or better yet their federal id number and run a credit report on them. There are several agencies that can help you, one of the most reliable is Dunn & Bradsteed.

A. Tebbetts Controller Blu Orbit International

These people do a great job - including overseas:

http://www.bluesentinel.com

Joseph Notovitz, President, Notovitz Communications

Dunn & Bradstreet. They have a variety of reports, depending on what you're looking for, all very reasonably priced. I would also have them fill out a credit application and verify their credit references, etc.

Shannon Ellis Business Manager Tackett Barbaria Design Group

We don't do a credit research until someone becomes a client. When they become a client we have them fill out our credit application which is passed on to a firm here in town that specializes in credit and collections.

Cyndi Fisher

Yesterday everybody was recommending D&B. While I hope this is based on good experiences with them, I'd like to throw in my experience as a cautionary tale. I've tried getting reports on potential new clients several times on line. D&B always says that they have a "comprehensive" report on the client. So I give them a credit card number (more below) and they send back a typical report which consists of: a.. 11 pages of weasel wording on why the statistics that they're going to give you don't really mean anything. b.. 3 lines to 1/2 page of background on the company. Interesting, but not enough to base a credit decision on. c.. A (very) few lines of actual credit data, much of which is identical between different reports because they base some of their stuff on very broad classifications, and none of which is sufficient to support any kind of informed decision about credit. I will grant that our clients aren't exactly General Motors. Nevertheless, I feel like an real idiot that I got fooled the last two times. I can only plead -- I though they were a reputable company. Also, watch out for their update service. You'd think that once you'd paid for the report they'd update it gratis. I mean, how much does an email cost them? But if you read carefully you'll find out you're going to be charged again for the update. Finally, be careful once you've given them a credit card number. They'll throw the report at you and charge you before you expect it once they have the credit card on file. There's no "shopping cart" that you can add or remove things from -- you click on the report and wham, it's there and you're charged with no confirmation. I do hope others have had better experiences than I. They must be in business for some reason.

Brent A. Byrd Chief Financial Officer Point Zero, Inc.

I always order the Supplier Evaluation report. I "pay as I go". I've never signed up for any other services, although they solicit me frequently. I like that it's a quick read. I like the Supplier Risk Score and the Paydex Score. It tells me quickly if I have to do further sleuthing. And if the client has nothing to hide and has submitted financials, I'll get a very nice recap of ratios. Sometimes the "lack" of information, is information in itself...

Roxanne Cowan

My experience with D&B is that they have given a good rating and 2 out of 3 times we have had to send the client to collection. Needless to say we do not use D&B anymore and do our own credit checks.

Judi Durkin J2 Marketing Services

I'd like to add to Brent's note of caution on D&B, not only my own bad experience, but also that of a handful of others who shared similar bad experiences. However, things may have changed since I last used D&B (over 10 years ago). D&B information collection is typically done by mail or phone. At one time, D&B had people visit establishments. But even when that was done it was very informal and usually done by newly hired business grads with no business experience. Depending on the credit risk, I may get the professional assistance of a Robert Half Temp credit manager, do my own check, always have my credit application completed, get a percent down on the first job, etc.

Rick Graf Graf Advertising