In a climate where bank lending remains out of reach for most small businesses
and day-to-day cashflow is vital to the life of a SME, it is even more important
that they take advantage of business intelligence services to reduce the risk of
becoming a victim of late or defaulted payments.
We’ve just released new survey results that shows that in the last five years large companies – those with in excess of 250 employees – have increased their usage of credit rating services from 73% to 79%. However, this is not the case for small businesses where there has been a decrease in usage, which exposes them to a greater risk of trading with firms who may become insolvent.
What’s interesting from
the survey is that over half (52%) of respondents have used credit referencing
services in the last week, and a quarter of firms use these services on a daily
basis. These figures show how credit referencing is becoming a core business
function, despite maybe the temptation to cut this type of expenditure when
times get tough.
The research also found that when selecting a provider,
the most important criteria for businesses was that the provider could deliver
reliable, quality data at all times; this was closely followed by the products
on offer being able to meet the company’s needs.
We also noted in the
results that affordable access to international reports is an area where credit
referencing providers can expand into over the next five years, however this is
already part of our Creditsafe packages.