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How to operate safely and successfully even in times of high risks

14 Sep 2020

Companies have been accustomed to operating in a relatively low-risk environment for more than a decade. Now, however, global measures to curb the spread of coronavirus have increased the risk, which is particularly pronounced in the tourism, hospitality and other industries, where direct contact with customers is necessary. What changes does this bring to the economy? Who is safe to do business with? How do we communicate to customers that we are a trusted company?
 
Bisnode analytical research confirms that the certificate of credit excellence is an indicator of the trust and stability of a particular company, which is especially important in times of crisis. At the same time, creditworthy companies are more likely to continue their business successfully even after the end of the pandemic.


Creditworthy companies are more likely to survive the crisis

Credit ratings and an accessible archive of financial data and events are the best possible approximation for assessing the readiness of companies to the current situation and show the financial condition of an individual company entering the economic crisis triggered by the pandemic. Among the most frequently used credit ratings calculated by Bisnode, Dynamic Rating and Failure score have the highest predictive value - these are dynamic categories that are recalculated daily even in this time of crisis based on all available data from primary sources. Companies with lower credit ratings are more exposed to the risks posed by the economic crisis and are therefore more dependent on possible state aid. However, companies with higher credit ratings are more likely to successfully continue their economic activity even after the end of the epidemic.
 
"According to our research, at the beginning of 2020 we had x% of excellent credit rating companies in [country]. This is a good indicator of the high level of maturity of the [country] economy. Companies with high business stability, low indebtedness and continuous loan repayment have a good chance of surviving even in these emergencies, "said Katarina Raičević, Head of Corporate and SME Sales for Southeast Europe at Bisnode. 


In [country], 99 % of all bankrupted companies were not eligible for our certificate 

At Bisnode, we find that in a bad month in [country] , only 1% of bankrupted entities achieved credit excellence. This means that 99% of all bankrupted companies were not entitled to a certificate of credit excellence. Given the minimum share of bankrupted companies that are entitled to the certificate of credit excellence, we can conclude that it represents a very high quality indicator before deletion.
 

S certifikatom podjetja izkazujejo svojo odličnost in dvigujejo zaupanje

V mednarodnem okolju je certificiranje uveljavljena praksa, preko katere podjetja dodatno utrjujejo svoj ugled ter dvigujejo zaupanje. V Sloveniji ima skupina Bisnode večletno tradicijo v podeljevanju certifikatov bonitetne odličnosti, ki predstavljajo ugledni potni list podjetja. S certifikatom se izkazuje nadpovprečna kakovost poslovanja podjetja, kar pomeni večjo učinkovitost in dobičkonosnost ter manjše tveganje pri poslovanju s tovrstnim podjetjem. Bonitetno oceno odličnosti imajo le najboljša podjetja, ki dosegajo najvišje standarde poslovanja in so se v daljšem časovnem obdobju izkazali kot zanesljiv partner. Le kdo ne bi želel sodelovati s takšnim podjetjem? V času krize vam lahko pridobljeni certifikat zagotovi nove partnerje, hkrati pa z njim utrdite ugled med obstoječimi strankami in partnerji ter v širši poslovni javnosti.


Support business in uncertain times with smart data and predictive analytics

In times of economic and financial crisis, companies become very cautious about their business partners. Awareness of the importance of checking business partners increases, in order to avoid potential risks. If you have access to accurate and up-to-date data from around the world, you can make better decisions, create profitability by avoiding uncertainty and credit losses, and save time and money. With Bisnode control over financial and other risks, you are informed about current events and changes, and with the help of credit rating and recommended credit limit, you can immediately decide whether to request an advance payment from the customer and when to set a limit or increase the loan amount. Assessing the credit rating of business partners is the basis of serious business. It makes sense to check potential partners before the start of cooperation and monitor them throughout the duration of the partnership.
 
“Companies need to respond quickly to the current situation. Our task is to support them in this and provide them with the right guidelines that enable companies to dare to do business with each other. With smart data, we help companies in their daily business, monitor new and existing customers, identify fraud and understand, and find potential customers. We warmly recommend companies to obtain as much credible information about the other party as possible before each business contact” advises Katarina Raičević.

Even in times of increased risk, it is possible to operate successfully and safely. We must not forget that the purpose of credit ratings and predictive analytics is to create trust and facilitate business. With the certificate of credit excellence, you prove yourself as a reputable and trustworthy company, and with the help of up-to-date quality data, you make sure that your business is as risk-free as possible.
 

Bisnode remains your reliable partner anytime, anywhere

At Bisnode, we want to help you make smart decisions in emergencies. We support you in responding to all changes in a timely manner, so that you can deal with the crisis as painlessly as possible, mitigate its consequences and establish regular work processes. the time will come to achieve new successes.