Creditworthiness assessment also indispensable for foreign customers
Switzerland is an export nation. Beyond the country's borders, credit checks can now be carried out quickly and, as a rule, online practically anywhere in the world.
Swiss foreign trade has undergone enormous shifts in the past three decades. Emerging markets such as China and India, which were still considered "distant neighbors" in the early 1990s, have overtaken important markets such as France, Italy and the United Kingdom. China is currently the third most important target country. Orders in the web store from these new, large markets have long since become the rule, no longer the exception. But what about the assessment of the creditworthiness of companies from China, for example?
Caution with higher sums
In principle, the same basic rule applies as in domestic business, irrespective of the provenance. The creditworthiness of the customer must be checked depending on the order volume. In the case of five-digit or higher sums, it is important to exercise particular caution and not to be blinded by the prospect of a good deal. On the online portal of Creditreform creditworthiness information for companies from almost all countries in the world is available in the shortest possible time. The database, which is maintained and continuously supplemented by a 50-strong team of the partner organization Creditreform International in cooperation with numerous country services, offers assessments on more than 30 million companies worldwide.
Require deposit as security
Especially for companies from emerging markets such as China, India, or Brazil with their volatile markets, creditworthiness information is absolutely essential, even for customers with whom one has been doing business for a long time. The payment terms are also very important. If there is a green light after the credit check, it is ensured that the customer is very likely to be able to pay the invoice. After that, it's a matter of setting the terms and conditions. Especially for new customers or when there is the slightest doubt, it makes sense to demand a down payment as security.
To the author:
Raoul Egeli has been President of the Swiss Creditreform Association since 2008 and President of Creditreform International since 2014, as well as a member of the Chamber of Commerce of the SGV. He is also Managing Director of the Creditreform Egeli companies in Basel, St. Gallen and Zurich. From 2009 to 2013, he was the central president of TREUHAND|SUISSE. Raoul Egeli is the author of several specialist books on the subject of credit and receivables management. www.creditreform.ch
