A good entrepreneur focuses on growing his business and acquiring new customers. If you work with payment terms, it is important to know that your customers can pay your invoices. One measure you can take is always check the creditworthiness of your new and existing customers. It can save you from many troubles.
Credit Check
Thanks to our free credit check, you quickly get an overview of the creditworthiness of 3 customers or prospects. It will allow you to better estimate whether these customers are able to pay your invoices now and in the future. Fill in the form below and receive the results in your mailbox.
Are your customers creditworthy?
Do the free check!
Fill in the below form and receive the results in your mailbox.
Each time your company sends an invoice to a customer, it might not be paid. This creates risks for the cash flow and profitability of your business. A large unpaid invoice can jeopardise the growth of your business or eventually lead you to insolvency. Unfortunately, even a reliable business partner can run into financial difficulties. And what do you really know about your new customers? Are they as financially stable as they seem? It is therefore essential to check the creditworthiness of all of your customers. Finally, you want your customers to pay your invoices.
You first need to collect the right information about your customers. Then you need to be able to detect the signals that things are likely to go wrong. We can help you assess the financial situation of a company. We have deep and up-to-date information on over 83 million companies around the world. By using this information, you can decide with confidence on the terms on which you want to do business with them.
At Euler Hermes, we fix the solvency of a company with a risk score: the score 1 is excellent, the score 10 means that the company goes bankrupt. A number of factors define a company's creditworthiness:
- Solvency
The solvency ratio indicates whether a company is able to meet its short- and long-term payments and refunds. The solvency ratio calculates how much of the total capital is debt and how much is equity. The higher the share of equity, the better the solvency of a company.
- Cash
Our risk analysts check whether a company has sufficient liquidity to refund short-term debts. When a business has many suppliers with long-term payment terms, or when it has no cash resources, the continuity of this company is seriously compromised. If a supplier demands payment of a debt, the company can’t afford it. This has a negative effect on the solvency of a company.
- Turnover and profit
We also take this information into account when defining the creditworthiness of a company. The more profit there is, the better the solvency of company.
Choose security
Entrepreneurs prefer to focus on their own business. And we understand that very well. That’s why, with our trade credit insurance solutions, we keep your company safe. You no longer have to stay awake when a large invoice might go unpaid. Trade credit insurance offers you payment security. It saves you many troubles and you can fully focus on what really matters to you. Trade credit insurance does not promise that there will be no default of payment, but we suffer the consequences for you.
Checking your customers’ creditworthiness not only means knowing whether you will be paid, but also developing your business with trusted partners and limiting the risk of non-payment. When the creditworthiness of one of your customers is impaired, you will need to review your payment's terms and conditions, possibly request additional guarantees or partial/full advanced payment upon order placement. If your customer is solvent, you can give them more flexibility and do more business with them. You can also check the creditworthiness of new customers which will allow you to develop new markets while limiting risks.