How We Use Global Trade Data

IDL TIFF fileSince 1841, companies have trusted Dun & Bradstreet’s Business Credit Information to help them reduce bad credit risk and improve cash flow.

One of the most common ways businesses borrow money is through the extension of Trade Credit, the practice of a supplier extending the buyer terms when payment is due. Terms offered can range anywhere from a few days to 30-, 60- or 90-day terms, and these are sometimes offered with cash discounts (i.e. 2/10 Net 30 2% Cash Discount if paid in 10 days, with Net 30 terms). This form of credit extension is frequently used as a way of obtaining working capital rather than borrowing from a financial institution. However, many firms have realized offering terms does not come without risk. A supplier that offers extended terms of payment is essentially providing short-term financing to their customer – similar to how a bank would provide financing – and likewise they too must evaluate a company’s creditworthiness to determine their risk of not being paid.

With access to the largest database of aggregated and matched Trade experiences, collected from companies across the globe, Dun & Bradstreet customers have an edge, because they have insight into how businesses in nearly every market are being responsible with their Trade credit. This is achieved through our special Global Trade Exchange Program of gathering and reporting trade data from participating partners in more than 40 markets.

How to Become a Global Trade Provider

Here’s how it works. A business signs up to join our network of Global Trade Exchange partners. Dun & Bradstreet screens each provider against its proprietary program criteria to ensure the integrity of the information being collected. Once the new Global Trade Provider is approved, the partner will send their accounts receivable data, including both favorable and unfavorable payment experiences, on their customers.

Dun & Bradstreet processes and matches the data to the proper business credit report under a specific D-U-N-S Number, Dun & Bradstreet’s unique global business identification system that validates and links data to businesses worldwide. The providers’ Accounts Receivable file will be collected and posted with payment experiences from other Trade partners on their customer’s business’ credit report in the Dun & Bradstreet global database. The business credit report will show details of the collected payments experiences and scores that measure that business’ likelihood of paying promptly. All Trade partners’ names are held with strictest of confidence and provider names are not released unless the Trade Provider authorizes Dun & Bradstreet to do so.

What’s So Great About Trade Data?

Companies can leverage trade data insight on all sizes of businesses with all lengths of history, from large established businesses with detailed payment histories to newer small businesses with limited payment histories. This information provides Dun & Bradstreet customers like Kyocera a way to evaluate their customers more thoroughly, so any financial risks are known before contracts are signed, products are sold or credit is extended. Trade data has the advantage of not only being directly related to how this company pays its bills, but it is usually more current than financial data, which may be a quarter or a year out of date by the time it’s published. Want to know how a business is faring this month, or this week? Trade data can reveal more recent information about a business’ payment habits that can help you forecast when and if you can expect your payment from them.

Get Paid Faster

Why join our Global Trade Data Program? Simple.

  • It’s free. This is done completely at no cost to our Trade Partners.
  • It provides the credit community, including each Trade Partner, a holistic view of how their customers are repaying their Trade credit.
  • It’s the socially responsible thing to do and helps the business community and especially your customers who are responsible with their payments.
  • Reporting a payment experience with your company helps them to establish or build business credit.

But if you don’t do it for any other reason than those mentioned, another great reason to become a Global Trade Partner is the likelihood that your company will get paid faster – possibly twice as fast. Dun & Bradstreet provides a number of services exclusive to trade providers. These include stickers that can be added to invoices and act as a gentle nudge, encouraging companies to follow good business practices and pay on time. More sophisticated products are designed to analyze the risk of the Global Trade partner’s customer portfolio, which can assist in improving DSO and collection strategies.

To find out more about Dun & Bradstreet’s Global Trade program, visit the Share Trade Data webpage.

Image credit: NASA Goddard Space Flight Center

Posted in Big Data, Credit & Risk, Data Quality, Strategic Partners by Jim Williamson

Jim Williamson is a Director at Dun & Bradstreet

Leave a Reply

Your email address will not be published. Have a question and don't want to leave a comment? Drop us a line.

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>