Why is business credit reporting important

1, the most effective “ID card”
In the market economy, whether domestic or international, enterprises are independent operators, to sign purchase and sales contracts, participate in bidding, apply for qualifications, strive for government procurement, engaged in international trade, etc., need to obtain the trust of the other party, and the enterprise credit report is the most effective “identity card”.
2, the most reliable “pass”
In the capital market, if enterprises want to raise funds by using financing tools such as bonds, they must go through the credit investigation conducted by qualified credit agencies before issuing bonds. In the credit market, enterprises to apply for loans from financial institutions also need to go through the enterprise credit information has a good credit status, especially the key large loan enterprises with a certain loan scale must be confirmed by the independent third-party professional credit information agencies to conduct standardized evaluation, in order to obtain the loan support of financial institutions. Therefore, enterprise credit information is the “pass” that must be obtained to enter the financial market.
3. Your Most important “asset”
In market economy countries, enterprises with good credit status can issue bonds or apply for loans at low interest rates, which can attract relevant parties to cooperate with them boldly and confidently, which opens up a broad road for enterprise development. Companies with poor credit standing have to issue bonds or apply for loans at correspondingly high interest rates, or even be rejected.
4, the best “firewall”
For foreign trade enterprises, the biggest risk is not that there is no customer inquiry, but that the customer is “cheated” by the inquiry. Effectively identifying transaction risks is a skill that foreign trade enterprises must have, and by studying the transaction party’s “enterprise credit report” to understand the other party’s history, financial status, operating status, etc., the risk is blocked outside the “firewall”.