Alternate Information Sources

There are several alternate information sources for credit management. In addition to paid credit reports, there is free information that can help detect and determine when to list a delinquent commercial customer for collection. When a commercial customer starts to go into arears it pays to do some basic free research.

If you have a proper credit agreement with a credit waiver then it is wise to pull a credit bureau, or credit report to get a snapshot of your customer's present credit status. However, sometimes their credit bureau may look okay but doesn't represent recent events. Either way, it pays to tap into some of the free information sources below:

Your industry grapevine is one of the best free sources a credit manager can have. A good example is when a commercial customer loses a major contract. Sooner, or later, the rumors will hit the industry grapevine. Often a rumor like this can be confirmed, or discredited, with some simple google searches and information gleaned from the rumored major contract company website.

Part of a great grapevine is your staff who run into your competition every once in a while. Sometimes an innocent conversation can reveal a bombshell about one of your customers. A typical example is when one of your delivery drivers hears a rumor that your customer is now on cash delivery terms with your competitor. If you look at their account and see a big upswing in their purchases, the rumor is probably true.

A simple google search on the company name plus the word problem, or complaints, can be surprising. This search string often reveals regulatory problems and-or lawsuits. Drilling down on the details will let you know how severe their problems are.

Google My Business reviews can help detect debtor companies that are headed for disaster. A quick search of their Google My Business reviews can be very revealing. A really bad sign is when the older reviews are generally positive and then suddenly turn predominately negative. Repetitive complaints are a good indicator of what is really going on with your customer.

Your customer's website can explain why your customer's purchases are shrinking. Some companies just don't understand the importance of a website. After reviewing your customer's website do a couple of google searches using key terms that are applicable to your customer. Check out your customer's competitor websites. In many instances it is obvious why your customer is being squeezed and their payments and purchases are becoming more sporadic. If your customer doesn't change their online presence, their competitors will continue to increase their market share at their expense.

Social Media platforms such as Facebook and other free platforms are another source of information. If you are not familiar with a social platform, odds are someone in your company knows it in and out. However, for some industries the free social media platforms won't have info. In these instances, information can usually be gleaned with paid business social media like LinkedIn.

Call your customer's trade supplier references providing you have a credit waiver. Just tell the supplier you are updating your customer's information and see what they have to say. Pay particular attention to any voice inflections and tones made by the person you are talking with, as it may reveal facts they want to conceal about your customer.

If you connect with some of the free information sources above, you are sure to have a better macro view of where your customer is at and where they are going.