Excellence in Credit Management through data insight

bernie GradyFaced with many potential sources of risk, all businesses need to take the time to consider what they can do to survive and flourish in this trading environment.

At Experian, we are passionate about making high quality and timely information available to help businesses of all sizes do just that.

Due diligence is absolutely vital to ensure commercial relationships are established on a firm footing. No business should be denied the services they need because they cannot prove their existence.

But neither should a creditor be exposed to bad debt or fraud because they are not making decisions based on the latest information.

Experian sources a wide range of public and proprietary data to ensure we provide the most complete and current information. Our commercial credit scores are calculated every time, in real time, based on this complete set of information.

Experian manage a number of data sharing programme, which enable our customers to access a more current indication of credit performance than is possible by relying solely on sources such as Companies House.

In addition to assessing credit worthiness this shared data can be used to validate the existence of any business electronically, helping our customers to cost effectively manage fraud risk, even with startups that have only been trading for a month or two.

Understanding more about the individuals behind a business is also valuable. In appropriate circumstances and with the right level of consent Experian is able to use its consumer data when assessing businesses, as the financial behaviour of those behind a firm is often reflective of the business.

Credit footprint information also helps to show an applicant’s appetite for credit. Creditors should be aware if an applicant or existing customer is making frequent applications, as this can potentially be a sign of distress.

Outside of traditional commercial credit information services, the intelligent integration of tools such as Google Streetview can also provide valuable insight. You can get a good indication of the size of a potential customer, and even whether it exists at all.

Our Business IQ service allows dynamic linking between addresses and Streetview for this reason.

Credit reports from most providers include a credit score based on the data considered.  Not all scores are created equal though. Different providers have access to different sources of data, and these data sets are also considered differently.

There is real science behind doing this well, and scores can be different in their predictions too. Some are not based on the most current and complete set of data available, others can simply be calculated using bad science. Reports from some business information providers are wrong as often as they are right. Experian are confident in the accuracy and performance of its scorecards and share detailed statistics to back-up these claims with current and prospective customers.

Experian is constantly investigating new, alternative sources of data insight to enhance the accuracy of our reports, and we continually monitor the performance of our scores and the science behind them. This means we are able maintain and improve what we firmly believe to be the most accurate assessments available.

Find out more from those leading the way in credit management at our next Credit Excellence workshop