It’s far cheaper than trying to collect on a delinquent account.
At the Jewelers Board of Trade (JBT), our primary objectives are to help you find new customers, make sound credit decisions, know your business partners and get paid.
I recently reviewed one of our draft weekly New Claims & Bankruptcy reports prior to its release to our subscribers, and noticed a familiar name among those companies against which claims had been placed that week. On a closer look, I recognized the name, because a few weeks prior there was another claim placed against the company. In total there were 11 claims placed with JBT during the past 24 months on this name.
We well understand that, from time to time, companies have difficulty meeting their obligations to the trade, and the JBT’s claims department is there to help its members collect these receivables.
However, further research revealed a curious and perhaps more disturbing pattern: Among the 11 member claims against this name, in only two cases were credit reports ordered prior to a sale being made, and in both cases the reports were ordered prior to a marked deterioration in the company’s credit profile.
In other words, nine member companies sold to this debtor without full knowledge of the company’s credit and financial history, or knowing the number and extent of member claims against the firm.
There is a lesson to be learned: If you’re a JBT member selling to a new or even a repeat customer, ORDER A CREDIT REPORT prior to the sale, not just for the company’s payment rating, but to review claims history and the background information on the company, its principals and affiliates that may impact the subject’s ability to settle its obligations as they become due.
The cost of a credit report is far less than the cost of collecting a delinquent receivable. In the example above, I believe many if not most of the sales to this company would have been declined if the members had seen the rating, reviewed the report and noticed the volume of claim activity.
If you’re not a member, consider joining the JBT, and order credit reports on your prospects and customers. Twenty-five reports come with each membership, with additional reports available for a small fee.
And consider subscribing to the New Claims & Bankruptcy report, which is issued weekly and details all the new claims submitted to the JBT that week.
For information on how to join JBT, go to www.jewelersboard.com, email us at jbtinfo@jewelersboard.com or call 401-467- 0055.
For members looking to order a report, click on the following link www.jewelersboard.com. After logging in, a company report can be found using Basic or Advance Search located on the home page.