Safeguarding Against Risky Financial Dealings
For the past three years, financial uncertainty has reigned supreme in the West. Recent developments, such as Standard & Poor’s decision last August to downgrade the credit rating of the USA from AAA to AA+ and the news in April of this year that the United Kingdom has returned to a state of recession, show that uncertainty is likely to retain its stranglehold in the immediate future.
S&P’s decision raised many interesting points but most pertinently the issue of financial risk. Standard & Poor are a global credit agency and their AAA rating represents risk-free borrowers whereas AA+ simply means almost risk-free. The reduced rating was seen as a warning sign and the decision led to significant erosion in investors’ confidence in the USA.
Avoiding financial risk has assumed the utmost importance in business strategy since the economic downturn started in 2008, and while you won’t find your potential debtors on S&P’s list, it is vital that you obtain a company credit report before you consider lending.
The company credit report is your number one tool against bad debt and financial risk. On it, you will find details of ownership, cash flow, capital and the fundamental financial ratios such as liquidity and performance.
Of course, you might avoid financial risk even without a company credit report but to do so would rely on nothing more than blind luck and gut instinct. This tool is the key means of risk avoidance used from global finance right down to personal finance – and could one day save your business.
Checkthatcompany is a UK leader in online business credit reports and UK company information. Now you can instantly credit check customers before you give them credit. With over 9.4 million company reports we offer the most comprehensive and up-to-date website and online company information database for businesses in the UK and Ireland.
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