Did you know that Canadian citizens spend more than 60% of their disposable income on goods and services from the US? Canada is our nation’s largest export market — larger than China, Japan, and Taiwan combined. More than $1.7 billion of goods and services are traded back and forth with Canada every day.
When doing business with a Canadian company, the risk is a little different than when doing business with a US firm. While there is no global standard for credit scores, you can still get business credit reports for Canadian companies to evaluate their credit and your financial risk.
Command Credit offers business credits reports for Canada through our partner firm, Equifax Canada.
Business Credit Report Canada
Equifax Canada business credit reports provide comprehensive commercial credit and financial information on companies in Canada. Information is gathered directly from creditors, government, and financial agencies.
When you purchase a business credit report on a Canadian business, the report will include information gathered from a variety of sources such as bank reports, industry groups, collection agencies, and other businesses. Reports include when available:
- Executive summary
- Credit information score
- Payment index
- Trade payment information and lines of credit
- Returned checks
- Collection accounts
- Legal filings
- Company Information
- Bank and branch Information
- Credit references
- Financial history
- Amount of outstanding debt
You will also get business identification details such as company names, years in business, and contact details. When you use Command Credit and our business credit reports partner, you get predictive analysis to answer the two big questions you want to know about your customers:
- Will I get paid?
- When will I get paid?
You can view a sample Business Credit Report Canada to see the type of information you receive.
The Benefits of Canadian Business Credit Reports
It makes good business sense to make sure all of your customers are financially stable before extending credit. When you are doing business with a company located in another country, it is even more important.
If something goes wrong, you have far less legal protection than if you were doing business with a business in the US. Without investigating the financial health of your business partners in Canada, you are putting your business and cash flow at risk for several reasons:
- Collecting on bad debt can be challenging in other countries and require additional governmental hurdles and legal fees
- You may not be to leverage assets or resources to satisfy debts
- If there are other creditors, you may compete for payments
- You can become a victim of fraud
Business Credit Reports Canada – Your Customers
Before you extend credit to a business in Canada, you want to feel confident that you are making a solid decision to protect your business.
You need the best business credit reports to help you determine the level of risk you are taking and whether to grant credit, establish credit limits, and define terms and conditions. A good business credit score can give you confidence in extending credit while a poor business credit score gives you an early warning of potential problems.
Business Credit Reports Canada – Your Suppliers
Canada has one of the lowest corporate tax rates in the world and significantly lower rates than in the US. This allows many Canadian companies to offer competitive pricing which makes them attractive trade partners for importing goods and services.
When you sign a purchase order, you are depending on your supplier to deliver the goods or services you’ve contracted for. You want the confidence that your suppliers have the financial resources to deliver on their promises. Before you get into a relationship with a new supplier, however, you should run a business credit report on suppliers regardless of where they are located.
Last year, Canada saw a record number of business bankruptcies. If you are depending on a Canadian supplier to fill your shelves, you will want to ensure they are financially sound and pay their bills on time.
Before doing business with a Canadian company, check their business credit report to protect your business. Request a consultation with an international business credit reporting expert.